Application & Financing Process
- The farmer/rancher seeking financing obtains the application forms (Official Action Certificate of Borrower(s) and Loan Submission Voucher) from the NIFA office/website or a local financial institution.
- The farmer/rancher locates his/her own lender and they negotiate the terms of the agricultural loan. The lender may be a lending institution (bank), private seller-lender offering a land contract, or a private investor lender.
- The application and a draft copy of the loan note (including amortization schedule) are completed by the lender and borrower and submitted to NIFA for review. If the application is approved, NIFA will issue an Intent Resolution to issue bonds, if all requirements are met to the satisfaction of NIFA.
- NIFA must hold a public hearing on the project (requiring a public notice published at least 14 days prior).
- When all terms of the bond issue are finalized, the farmer(s) or rancher(s) may request final approval from NIFA, and preparation of final documents for execution at the time of loan closing.
- All parties may then execute documents, close the bond issue, and fund the underlying loan.
- All payments on the NIFA loan are made directly to the local financial institution servicing the loan.