Property inheritance is a complex issue for farm families, but lenders can now seek a way to offer some help.
Intermediary lenders can apply for loans through the Heirs’ Property Relending Program, a new program with the U.S. Department of Agriculture. Applications will be accepted for the competitive loan program through October 29.
The HPRP loans up to $5 million at 1 percent interest to eligible lenders. Those lenders can then re-loan the money to heirs who need help resolving title issues by financing purchase or consolidation of property interests, as well as financing costs.
Lenders should use the HPRP application form, which is submitted by mail to:
FSA Deputy Administrator for Farm Loan Programs
Loan Making Division
1400 Independence Avenue, S.W.
Washington, DC 20250
Eligible lenders must be certified as a community development financial institution and have experience/capability in making similar agricultural and commercial loans. Should applications exceed the available funds, applicants with at least 10 year of experience with socially disadvantaged farmers and are in states that have adopted the Uniform Partition of Heirs Property Act will be preferred.