3. WHEDA Ag Guarantees
• Small Business (SBG)
• Agribusiness (AgBG)
• Farm Asset Reinvestment Management (FARM)
• Credit Relief Outreach Program (CROP)
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
4. Authority
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
• Wisconsin Statutes Chapter 234
–1972 Legislature and Governor
Create WHEDA
–1983 Expand authority to
Economic Development
5. Authority
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
• Wisconsin Development Reserve Fund
–Limited to $49,500,000
–$1 of reserve to $4.50 outstanding
guaranteed principle (all programs)
–All fees are returned to the fund
6. WHEDA Ag Guarantees
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
• Small business
– 50% up to
• Agribusiness
– 50% up to
• Farm Asset Reinvestment Management
– 25% up to $200,00
7. Credit Relief Outreach Program
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
• Credit Relief Outreach Program
–90% up to $50,000
–80% $50,000 - $150,000
8. Purpose
• To pay for services or consumable goods
necessary to produce an agricultural
commodity
– Crops must be planted and harvested for
consumption within term of the loan
– Livestock must be purchased, fed and sold
within term of the loan
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
9. Eligibility
• Unable to obtain conventional financing at
reasonable terms
• Debt-to-asset ratio is 40% or greater
• Farmer actively engaged in the farm operation
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
10. Eligibility
• Sufficient collateral to cover the CROP loan
• Wisconsin resident
• Farmer current on court-ordered payments
and not in default on any WHEDA loans
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
11. Use of Proceeds
• Examples of eligible expenses include:
– Land rent, equipment rental or repair
– Custom hire and direct labor costs
– Crop insurance
– Fertilizer, seed, fuel, animal feed
– Pesticides and herbicides
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
12. Terms
• Maximum loan amount $150,000
• 90% guarantee on annual production expenses
of less than $50,000
• 80% guarantee on annual production expenses
$50,000 or greater
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
13. Terms
• Maximum interest rate is Prime + 3% fixed
• Rate cannot exceed 7%
• Maturity date no later than 12 months after
loan closing
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
14. Application Process
• Request to reserve a guarantee in advance of
the Note
• Review of the request and approval within 5
business days (usually 24 – 48 hours)
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
15. Fees
• Application fee equal to 1% of total
disbursements
• Minimum fee of $500
• May be financed as part of the CROP loan
• not guaranteed
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
16. Prior Year Outstanding
CROP Loans
• Farmer is eligible for a CROP loan after January
1st of current year
• Guarantee not in effect until previous CROP
loan is paid-in-full
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
17. Refinance
• Only refinance an outstanding CROP loan from
previous calendar year
• Permitted for two consecutive years as long as
at least 60% of previous CROP loan is repaid
• Deadline is June 30 of each year
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
18. Refinance
• Example:
– Year 1: $30,000 loan taken out
– Year 2: $12,000 refinanced + $48,000 new dollars
– Year 3: $24,000 refinanced + $36,000 new dollars
– Year 4: Cannot receive new guarantee until
entire loan is repaid
Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
19. Cooperative Network Wisconsin Credit Conference WHEDA Agricultural Guarantees
Mike Powers
Community Development Officer
Business Development
Wisconsin Housing and Economic Development Authority
(608) 261-5925 office and mobile
Mike.Powers@WHEDA.com
