Nonrecourse Loans

Business / Agriculture / Nonrecourse Loans: Farmers or processors participating in government commodity programs may pledge certain stored commodities as collateral and obtain a loan from the CCC at a commodity-specific, per-unit loan rate. The borrower may repay the loan, with interest, within a specified period and regain control of the commodity. Alternatively, the commodity can be forfeited to the CCC at the end of the term with no penalty. The government takes no recourse beyond accepting the commodity as full settlement of the loan. The loans provide operating capital to producers of wheat, feed grains, cotton, peanuts, tobacco, rice, and oilseeds. Dairy processors (until 2000) and sugar processors (when imports are equal to or greater than 1.5 million short tons) are also eligible for nonrecourse loans. In the past, loan rates sometimes exceeded market prices. The CCC then became an alternative purchaser to the market, thereby supporting prices. For those commodities eligible for marketing assistance loan benefits, producers may repay the loan at the world price (rice and upland cotton) or posted county price (wheat, feed grains, and oilseeds).

Marketing Assistance Loans

Business / Agriculture / Marketing Assistance Loans: Nonrecourse loans made available to producers of wheat, feed grains, upland and ELS cotton, rice, soybeans, and minor oilseeds under the Agricultural Market Transition Act provisions in the FAIR Act o MORE

Section 502 Loans

Business / Agriculture / Section 502 Loans: A rural housing loan program, administered by the Rural Housing Service (RHS), authorized under Section 502 of the Housing Act of 1949. Borrowers may obtain loans for purchasing or repairing new or ex MORE

Commercial Real Estate Loans

Business / Loan / Commercial Real Estate Loans: Similar to residential mortgages, but collateral is business property. Interest rates are usually fixed, the length of the loan can range from 5 - 20 years and payments due monthly. MORE

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