Small businesses have
had it tough the past few years, and equine operations are no exception. In the past, loans from your
local lender were relatively easy to obtain and could be used to purchase
farms, operate your business or even make capital improvements. In today’s economy, those loans are
harder to get. The good news is
there are still many options available to you, as an equine operation, that can
help finance your business.
Consider these options:
-
MidAtlantic Farm
Credit’s StartRight Program for young, beginning and small farmers – Contact
your local Farm Credit office for more information or visit www.farmcreditequine.com.
-
Maryland
Department of Agriculture Special Projects and Tributary Strategies - Visit the
MD Department of Ag Conservation website (http://www.mda.state.md.us/resource_conservation/index.php)
for a list of possible grants available for equine related conservation
projects.
-
Maryland
Departments of Agriculture and Environment Low Interest Loans for Agricultural
Conservation (also known as LILAC) – LILAC eligible loans offer a significant
reduction in your interest rate for eligible purchases of certain types of
equipment and installation of approved best management practices on
agricultural land that help protect water quality. Contact your local Soil Conservation office for assistance
with the application and to have your project referred to Maryland Department
of Agriculture and Maryland Department of Environment.
-
US Small Business
Administration or SBA – The SBA provides loans to small businesses for startup
and growth. For more information
visit their website at www.sba.gov.
-
Maryland
Agricultural & Resource-Based Industry Development Corporation or MARBIDCO
– MARBIDCO offers low-interest loans to most agricultural producers. These loans are offered for the
purchase of land and equipment.
The loan programs are available to most farmers including equine. Also, MARBICO will work in conjunction
with your lender to offer a combined lending package. Visit their website at www.marbidco.org
for more information.
As you research the
above options, remember to visit your local state, and federal, department of
agriculture websites for additional information on subsidies, grants and low
interest loans. In most cases,
horse owners are not considered agricultural producers and are not eligible for
certain state and federal programs.
For example, FSA guarantee loans and direct loans are restricted to
production agriculture. However,
there may be rare instances that a second enterprise on the farm would be
considered production agriculture such as cash grain and change the
qualification status.
Take
the time to document the diversification of your operation. When completing the research for
applicable loans, grants, and subsidies, your documentation of the operation
could aid in the qualification process. Also, periodically revisit local state and federal
websites for possible changes in requirements for aid and additional projects
offered. Lastly, don’t
forget to contact your farm lender with any questions concerning your borrowing
needs.
