Direct Ownership FSA Loans: Online Applications

The USDA provides a number of different rural loan options through FSA loans. FSA loans may be in one of two forms: they may be through a private lender then guaranteed by the agency; or, they may come directly through the FSA. Both types of loans are subject to extensive requirements with the FSA, but direct loans are much more restrictive. To receive a direct loan, specifically, you must prove you are in need of the funds and cannot get them through another source. If you think you are qualified, you can apply for the loan program online.

Find the Appropriate Form

You will need to first ensure you are applying for the right opportunity. The FSA website will direct you to a directory of forms from three different agencies, and you will need to elect only those loans for the Farm Service Agency. Then, from the drop down menu, you will have to select "direct loans." From this point, there are three more categories to choose from: bio-refinery, business and rural energy for America. Most business owners or small farmers and ranchers will be applying for the business and industry loan; however, you may want to check with your local USDA office to determine which type of loan you should seek. Finally, you can enter the form number you need if you know it. This will lead you directly to an online application.

Fill out Form Completely

When you fill out any loan application, you need to provide complete details and ensure you are not omitting any necessary information. This is particularly true with a government sponsored loan. There are more requirements in terms of your personal history on this loan than on a private loan. You will need to provide information on your citizen status, tax status and your experience as a farmer. You will also need to show you are unable to qualify for private loans. FSA direct loans are only extended to those people who have sought and been turned down for other small business loans. You will still need to show you are creditworthy, though, by disclosing your credit information and submitting to a credit check. 

Save & Submit your Form

The FSA website allows you to create a login for yourself. This is very useful when it is time to save your form. You may not complete the form all in one sitting. You will have to gather a lot of information, and it is likely you will not have all the information you need. Save your form by creating a log-in, then come back with the information you need. Only submit your form once you have received it several times for accuracy and are confident no information is missing.