Agricultural Loan Guarantee Program
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Agricultural Loan Guarantee Program
Deadline: Open Enrollment. Lender must apply on behalf of qualified borrower.

The Agricultural Loan Guarantee Program (ALG) provides financial assistance to establish or enhance farming or ranching operations or to establish an agricultural-related business. This program provides assistance in the form of guarantees based on a tiered structure, not to exceed $500,000 or 80% of the loan amount, whichever is less.

  • An individual that will use the loan proceeds to establish or expand an agricultural business in Texas.
  • Meet the lender’s underwriting criteria.
  • The borrower(s) should have:
    • A credit score of 650 or greater
    • Equity contribution of at least 15% of the loan amount
    • Debt to equity of 2:1 or less
    • Debt service coverage of 1.25 or better

Application Process:
  • The applicant should discuss the program with his/her lender. TDA does not issue any loans. 
Note:  Eligible lender includes any commercial lending bank and the Farm Credit System.
  • The lender submits a signed Master Lender Agreement to the Texas Department of Agriculture (Department), unless one is already on file.
  • The lender submits the application to the Texas Agricultural Finance Authority (TAFA) via the application portal.
  • Mail the $100 application fee to the Department.
  • TAFA and the Department review the application for eligibility.
  • If approved, an origination fee of no less than 1% of the guaranteed amount will be due within 10 days of the loan closing.

Use of Funds:
A loan guarantee recipient may use loan proceeds for any agricultural related purpose, including:
  • Working capital,
  • Lease of facilities,
  • Purchase of machinery and equipment, and/or
  • Purchase of real estate, as identified in recipient’s documentation submitted in support of the application.

Guarantee Amounts:
There are two options depending on the terms of the loan:
  • $250,000 or 90% of the loan amount, whichever is less 
  • $500,000 or 80% of the loan amount, whichever is less.

The duration of a loan guarantee approved by TAFA must not exceed the useful life of the assets being financed or 10 years, whichever is less.

Note: The lender and borrower determine the loan terms, while TAFA retains the right to alter any loan terms as necessary to provide the guarantee.

  • Application Fee: $100 (non-refundable)
  • Origination Fee: A minimum of 1% of the guaranteed amount.

Interest Rebate:
Borrowers under the ALG program may be eligible for a rebate of a portion of the interest they pay on the loan. The maximum annual rebate is $500 and shall not exceed the 1% origination fee over the term of the guarantee. The interest rate rebate may be adjusted by TAFA within statutory limits. 
Bon Wier
TAFA Bond Finance Specialist
(512) 936-8163

Roxana Newton
Program Director for Economic Development
(512) 463-2537

Mindy Fryer
Director, Contracts and Grants
(512) 463-6908



Application Fee: $100 - due at time of application submission
Origination Fee: 1% of loan guarantee amount - due within 10 days of the initial funding of each loan.

Mail to: 
Texas Department of Agriculture
Attn: TAFA - Ag Loan Guarantee
PO Box 12847 
Austin, Texas 78711

Texas Department of Agriculture
Attn: TAFA - Ag Loan Guarantee
1700 North Congress Ave, 11th Floor
Austin, Texas 78701

AgriStress 833-877-2474

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