Lenders can now apply for New Heirs’ Property Relending Program
WASHINGTON — Intermediary lenders can now apply for loans through the new Heirs’ Property Relending Program (HPRP). The U.S. Department of Agriculture is accepting applications now through Oct. 29, 2021, and cooperatives, credit unions and nonprofit organizations are encouraged to apply for these competitive loans, which ultimately will help agricultural producers and landowners resolve heirs’ land ownership and succession issues.
“Heirs’ property issues have long been a barrier for many producers and landowners to access USDA programs and services, and this relending program provides access to capital to help producers find a resolution to these issues,” said Zach Ducheneaux, administrator of USDA’s Farm Service Agency. “USDA is committed to revising policies to be more equitable and removing barriers faced by heirs’ property owners is part of that effort.”
Through HPRP, FSA loans up to $5 million at a 1% interest rate to eligible lenders. Then, those eligible lenders will reloan funds to heirs to help resolve title issues by financing the purchase or consolidation of property interests and financing costs associated with a succession plan.
Intermediary lenders should apply by the Oct. 29, 2021, deadline using the HPRP application form (FSA-2637), which can be submitted to FSA by mail: FSA Deputy Administrator for Farm Loan Programs, Loan Making Division, STOP 0522, 1400 Independence Avenue, S.W., Washington, DC 20250.
Additionally, FSA will host a webinar on Sept. 15 at 2 p.m. ET for interested lenders, who can register or learn more on the FSA Outreach and Education webpage.
Intermediary lenders must:
be certified as a community development financial institution, and
have experience and capability in making and servicing agricultural and commercial loans that are similar in nature.
If applications exceed the amount of available funds, FSA will prioritize applicants that both:
have at least 10 years or more of experience with socially disadvantaged farmers; and
are located in states that have adopted a statute consisting of enactment or adoption of the Uniform Partition of Heirs Property Act. A list of these states is available at farmers.gov/heirs/relending.
Frequently asked questions (including those in Spanish, Thai and Chinese), the Aug. 3, 2021 overview webinar, and other resources can be found on farmers.gov/heirs/relending.
After the loans are announced, USDA will distribute information for heirs on how to apply. Information for heirs is also on farmers.gov/heirs/relending.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User