REVOLVING LOAN FUND FOR

AGRICULTURAL PRODUCER/MARKETING COOPERATIVES

  This program was developed to stimulate crop diversification and to help limited resource farmers make a living on small acreage by growing high value crops.

  The Arkansas Development Finance Authority has committed $1 million for a revolving loan fund for agricultural producer/marketing cooperatives, non-profit associations and non-profit corporations in Arkansas who are producing and/or marketing fruit and vegetable products for their members.

  The maximum loan to any one group will be $100,000.00

  The interest rate on the loan will not exceed eight percent, and in no case will exceed the Arkansas usury rate. ADFA will try to match the length of the loan with the life expectancy of the item financed.

  After review of the application package, ADFA staff will determine the creditworthiness of the loan. If the loan is approved by the ADFA Board, the borrower will be required to provide at least 10% of the loan amount. This equity contribution can be cash, the value of land, buildings or equipment. A 20 percent equity contribution is required in the following situations: start ups, expansion to increase volume by 50 percent or more and/or unwillingness to give cooperative guarantee beyond financial collateral.

  Examples of eligible capital items include hydro-coolers, ice machines, refrigerated trucks, pea shellers, grading lines, etc.

  Examples of eligible operating expenses include personnel, travel, utilities and supplies.

FOR MORE INFORMATION ABOUT THE REVOLVING LOAN FUND FOR AGRICULTURAL PRODUCER/MARKETING COOPERATIVES CALL 1-800-582-6637.