Financing resources for cooperative businesses include grants, loans, guaranteed loans, revolving loan funds, equity capital, and crowd sourcing. Funding can come from Federal agencies, private-public partnerships, lending institutions, Community Development Financial Institutions (CDFIs), foundations, and other organizations. If your funding opportunity is not represented here, please contact us at CoopInfo@usda.gov.
Section 108 Loan Guarantee Program Flexible provides low cost community and economic development financing through the Community Development Block Grant (CDBG) program.
America's next generation of farmers and ranchers are supported through FSA's "Beginning Farmer" direct and guaranteed loan. Farm Ownership loans can provide access to land and capital. Operating loans can assist beginning farmers in become prosperous and competitive by helping to pay normal operating or family living expenses; open doors to new markets and marketing opportunities; assist with diversifying operations; and so much more. Through the Microloan programs, beginning farmers and ranchers have an important source of financial assistance during the start-up years.
Commodity loans provide interim financing at harvest time to meet cash flow needs.
Facility loan programs help producers build or upgrade farm storage and handling facilities.
USDA Farm Service Agency Heirs' Property Relending Program provides loans to intermediary lenders, who then relend the funds to producers. Intermediary lenders will make loans to heirs who: are individuals or legal entities with authority to incur the debt and to resolve ownership and succession of a farm owned by multiple owners; are a family member or heir-at-law related by blood or marriage to the previous owner of the property; agree to complete a succession plan. See website for Approved Lenders to connect if you are interested in assistance.
The Farm Service Agency offers loans to help farmers and ranchers get the financing they need to start, expand or maintain a family farm. Use the Loan Assistance Tool to check your eligibility for FSA Loans, discover FSA loan types, learn about FSA Loan requirements, and walk through the easy-to-understand instructions when completing the forms. Use our Farm Loan Discovery Tool to find the loan that’s right for you.
Cooperatives can receive guaranteed loans through the USDA RD Business and Industry Loan Guarantee Program. These loans can be used, for example, to convert a business to an employee-owned worker cooperative; enlarge, repair, or modernize a business; purchase and/or develop land.
USDA Rural Development Broadband ReConnect Loan and Grant Program furnishes loans and grants to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas. The entities considered eligible to apply for assistance under the ReConnect Program include: Corporations, Limited Liability Companies and Limited Liability Partnerships, Cooperatives or mutual organizations, states or local governments, a territory or possession of the United States; and Tribal entities, see website and regulations for further details.
USDA Rural Development Multifamily Housing Loan Guarantee program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low- and moderate-income individuals and families in eligible rural areas and towns. Private lenders may apply for a loan guarantee on loans made to eligible borrowers who are building or preserving affordable rural rental housing. Eligible lenders are automatically eligible if approved and active in one of the following programs: Fannie Mae, Freddie Mac, Ginnie Mae; HUD; Federal Home Loan Bank members; State or local housing finance agencies. If you would like to find a rural rental property to apply as a tenant search here