Under the program, qualifying intermediary lenders can apply for loans of up to $5 million at one percent interest. What loan terms are available to intermediary lenders?
(2) has experience and capability in making and servicing agricultural and commercial loans that are similar in nature. (1) is certified as a community development financial institution, and Who is eligible to be an intermediary lender?Ĭooperatives, credit unions, and nonprofit organizations may apply to be intermediary lenders under the HPRP so long as the institution: Phase I of the implementation of the HPRP is the opening of the application period for qualifying intermediary lenders to submit their applications to the FSA. Phase I: The FSA to Select Intermediary Lenders
The program is set up in two phases: first, the Farm Services Agency (FSA) will select intermediary lenders, then heirs can apply directly to those selected intermediary lenders for loans and assistance. According to the AugFinal Rule, HPRP loans will assist heirs "with undivided ownership interests resolve ownership and succession issues on farms that are owned in common by multiple heirs … may be used by an ultimate recipient to purchase and consolidate fractional interests held by other heirs in jointly-owned property, to pay for costs and fees associated with developing and implementing a succession plan, and to pay for costs associated with buying out fractional interests held in tenancy in common by other heirs in jointly-owned property to clear the title (for example closing costs, appraisals, title searches, surveys, preparing documents, mediation, and legal services)." 2 To help farmers owning or operating on heir property, Congress has provided assistance in the form of competitive loans to be distributed through the new Heirs' Property Relending Program (HPRP) created by Section 5104 of the 2018 Farm Bill.
The descendants, or heirs, have the right to use the property, but they do not have a clear or marketable title to the property since the estate issues remain unresolved." 1 Historically, farmers operating on heir property have faced an uphill battle in receiving vital assistance and benefits from USDA programs in part because of the belief that they cannot get such assistance without proof of ownership or control of land. Heir property refers to "family-owned land that is jointly owned by descendants of a deceased person whose estate did not clear probate. The United States Department of Agriculture (USDA) is providing $67 million to help resolve heir property issues.
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