Emergency FSA Loans: Qualifying with Bad Credit

Emergency FSA loans can be a great way to recover after a natural disaster to your farm. You can get the money you need to rebuild the farm at a lower than market interest rate over many years to repay. While there are many advantages to this program, it does not do you any good if you can not qualify. If you have bad credit, you may be worried about qualifying. Here are a few things to consider if you have less than desirable credit.

Acceptable Credit

The good thing about this program is that the government will work with people who do not have perfect credit. The exact credit score is not clear, but it says right on their website that they only require "acceptable credit". This does not mean stellar or any other term that insinuates a high credit score. The FSA understands that those seeking agricultural loans in the face of a disaster did not want to borrow the money. Their hand was forced by a natural disaster. The government also knows that the strength of this country relies a great deal on farms. If these farms go out of business, a little piece of the country will be weakened. It is up to them to approve as many loans as possible to keep the system afloat. 

Different Standards

One of the great things about this type of rural loan is that it looks more heavily at the farm and the program than at your credit score. Your credit history is a factor, but if you can prove other things, they are more likely to overlook it. The government will want to establish that you have acceptable farm records and that you can document a crop loss due to the disaster. Another big thing that they will want you to do is come up with a business plan. You and a representative with the FSA will sit down and look at acceptable plans together. You will share ideas on how to improve the farm and meet the requirements of the loan program. Another part of the program includes a financial management program. You will be asked to attend the program and learn how to run the business side of the farm more efficiently. All of these factors play a big role in getting you approved for the money you need. If you can meet all of the requirements for the loan, they will be very likely to approve you.