Best Agriculture Business Loans For Your Farm Or Ranch

Total Rating	4.8
Rates & Fees5.0
Services5.0
Eligibility Requirements4.9
Application4.5
Sales & Advertising Transparency4.4
Customer Service4.9
User Reviews4.9

Pros

High borrowing amounts
Apply for multiple loans at once
Receive funding within 24 hours

Cons

Rates can be expensive
Funding can sometimes take longer than expected

Why We Chose Lendio For Agricultural Businesses

Lendio is a loan aggregator that connects borrowers with multiple lenders via a single application. Equipment financing is just one loan product offered through Lendio. Through Lendio, you can apply for $5,000 to $5 million to purchase equipment.

The application process takes about 15 minutes, and you can receive funding in as little as 24 hours. Loans can be used to purchase heavy equipment, office furniture, software, vehicles, and more

Lendio Rates & Fees

Loan terms are between one and five years. Interest rates for the most creditworthy borrowers are 7.5%.

Lendio Eligibility Requirements

To qualify through Lendio, you need at least $50,000 in annual revenue and a credit score of at least 520. Some equipment financing lenders on Lendio require several months to several years in business, but others do not have any time-in-business requirement at all.

When To Use Lendio

You want an easy way to apply to and compare offers from multiple lenders with one application
You have bad or fair credit and want to see what financing options you qualify for

Get Started With Lendio

OnDeck: Best For Working Capital

OnDeck

Total Rating	3.9
Rates & Fees4.6
Services2.9
Eligibility Requirements3.8
Application4.5
Sales & Advertising Transparency3.8
Customer Service4.1
User Reviews4.0

Pros

Fast and easy application
Builds business credit
Lower costs for repeat customers

Cons

Low maximum loan amount
Only two types of financing to choose from

Why We Chose OnDeck Loans For Farmers

OnDeck offers fast, easy, short-term installment loans up to $250,000. The borrower requirements are pretty easy to meet, so most established businesses will qualify for a loan from OnDeck. You will have to repay your OnDeck loan quickly, but this type of farm business loan works well for short-term working capital needs.

If an OnDeck short-term loan doesn't fit your needs, the lender also offers lines of credit up to $250,000.

OnDeck Rates & Fees

Interest rates for OnDeck’s term loans start at a 29.9% APR, but the average rate is 56.1%. A one-time origination fee of up to 5% of the total loan amount is also charged. Repayment terms are up to 24 months.

OnDeck also has lines of credit with APRs starting at 29.9%, but the average APR is 55.9%.

OnDeck Eligibility Requirements

To qualify for an OnDeck loan, you must be in business for at least one year and have annual revenue of at least $100,000. The minimum credit score required is 625.

When To Use OnDeck

You need a short-term loan or line of credit
You need fast funding for immediate use
You have fair or good credit and decent revenues

Get Started With OnDeck

BusinessLoans.com: Best For Invoice Financing

BusinessLoans.com

Get Started With BusinessLoans.com

Total Rating	4.0
Rates & Fees4.6
Services4.0
Eligibility Requirements4.1
Application3.0
Sales & Advertising Transparency3.6
Customer Service4.1
User Reviews4.4

Pros

No credit score requirement
Multiple types of funding to choose from
Quick, easy application

Cons

Minimal rate & fee information disclosed online

Why We Chose BusinessLoans.com For Ag Business Loans

Invoice financing and factoring can help farmers free up cash from unpaid invoices. Online lending marketplaces like BusinessLoans.com make these services fast and convenient. And if invoice factoring isn't right for your agricultural business, BusinessLoans.com also offers other loan types, such as installment loans, merchant cash advances, lines of credit, and more.

BusinessLoans.com Rates & Fees

BusinessLoans.com does not list rates and fees on its website. However, the company does state that lending amounts range from $5,000 to $3 million and term lengths for installment loans range from 3 months to 5 years.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com does not require applicants to have a certain credit score to use the service. You’ll have the most offer choices if you make least $100,000 and have at least six months in business, but the company will still try to find a funding solution for you if you don’t meet these minimums.

When To Use BusinessLoans.com

You have bad or fair credit but your business has strong revenues
You want to free up cash from unpaid invoices
You want to apply to multiple business lenders at the same time

Capital One Spark Cash Plus: Best For Recurring Monthly Expenses

Capital One Spark Cash Plus

Get Started With Capital One Spark Cash Plus

Total Rating	3.9
Rewards & Perks4.0
Rates & Fees4.2
Features4.2
Eligibility Requirements2.6
Customer Service3.5
User Reviews2.5

Pros

Unlimited 2% cash back on all purchases
Free employee cards
5% cash back on rental vehicles and rental car insurance

Cons

Need excellent credit to qualify
Rewards aren’t as good as some business credit cards

Why We Chose Capital One Spark Cash Plus For Agriculture Business

Capital One Spark Cash Plus is an excellent choice for farmers, ranchers, and other business owners because of its unlimited 2% cash back rewards on all purchases. A business charge card such as Spark Cash Plus works well for paying ongoing expenses, including those that you may need some extra days or weeks to pay off while earning cash back on all your expenditures.

With Spark Cash Plus, there are no minimum requirements for redeeming your rewards, and businesses that spend at least $200,000 yearly will receive an extra $200 annual cash bonus. Capital One Spark Cash Plus also comes with free employee cards, 5% cash back on rental vehicles, and rental collision coverage.

Capital One Spark Cash Plus Rates & Fees

This business credit card has an annual fee of $150. There is no APR, as the balance must be paid in full every month. You will be charged a 2.99% late fee each month if you fail to pay your balance in full.

Capital One Spark Cash Plus Eligibility Requirements

While Capital One does not specify a minimum credit score for this card, applicants must typically have excellent credit to qualify. Note that this is a charge card, so you’ll need to pay off your balance every month.

When To Use Capital One Spark Cash

You want a business charge card that earns cash back
You want a business charge card with free employee cards and rental vehicle benefits
You have good or excellent credit

SmartBiz: Best For SBA Agriculture Loans

SmartBiz

Get Started With SmartBiz

Total Rating	4.7
Rates & Fees4.8
Services4.8
Eligibility Requirements4.8
Application4.5
Sales & Advertising Transparency4.9
Customer Service4.9
User Reviews3.5

Pros

Streamlines SBA loan application process
Low-interest rates
Transparent terms and fees

Cons

Funds take longer to disburse than other (non-SBA) online loans
Must have at least a couple years in business to qualify

Why We Chose SmartBiz Loans For Agricultural Business

The Small Business Administration offers affordable and flexible agriculture business loan options to established businesses with good credit, but navigating the application process is difficult and time-consuming for many. SmartBiz is a lender that takes the guesswork out of SBA loans and makes it easy to apply online.

Through SmartBiz, you can submit an online application for an affordable SBA 7(a) loan to purchase commercial real estate for farming. SBA loans are some of the best commercial real estate loans there are. Loan amounts of $500,000 to $5 million are available, with repayment terms of up to 25 years. Your SmartBiz SBA loan should be funded about a month after approval, compared to two to three months when you obtain an SBA loan through traditional channels.

SmartBiz Rates & Fees

SmartBiz APRs on SBA 7(a) commercial real estate loans range from 11.25% to 13.25%.

SmartBiz Eligibility Requirements

To qualify for a SmartBiz SBA 7(a) commercial real estate loan, at least 51% of the property must be owner-occupied. You must be in business for over two years and have a minimum credit score of 650.

When To Use SmartBiz

You want an easier way to apply for an SBA loan online
You have an established business with positive cashflow

Fundbox: Best Line Of Credit

Fundbox

Total Rating	3.8
Rates & Fees3.1
Services3.6
Eligibility Requirements4.5
Application4.8
Sales & Advertising Transparency3.8
Customer Service3.0
User Reviews4.4

Pros

Fast, flexible access to capital whenever you need it
You only have to repay what you withdraw
No origination fee or draw fee

Cons

Small credit limit
Only one type of financing offered

Why We Chose Fundbox For Ag Business Loans

Fundbox offers simple, flexible business financing, including online lines of credit up to $150,000. A business line of credit such as the one offered by Fundbox works great for having capital on-demand to buy equipment, purchase inventory, fund payroll, and pay vendors. A line of credit is also good for when you don't know the exact amount of capital you need or when the amount required may vary from month to month.

The application process takes about 10 minutes, during which you'll connect your business bank account and accounting software. Once approved, funds are available immediately and can be deposited into your bank account as soon as the next business day.

Fundbox Rates & Fees

Fundbox repayment terms are 12 or 24 weeks, and once you repay what you owe, your line replenishes. Fees begin at 4.66% and are paid along with your balance through weekly payments. There are no prepayment penalties, and paying off your loan early helps you save on fees.

Fundbox Eligibility Requirements

You’ll just need six months in business and a 600 FICO to qualify.

In addition to your FICO, the health of your business determines approval and credit limits.

When To Use Fundbox

Your business is profitable but has occasional cashflow issues
Your own a newer business and need a small, quick loan

Get Started With Fundbox

National Funding: Best No Collateral Small Business Loans

National Funding

Get Started With National Funding

Total Rating	3.7
Rates & Fees3.8
Services2.8
Eligibility Requirements4.3
Application4.8
Sales & Advertising Transparency3.8
Customer Service2.9
User Reviews3.7

Pros

No collateral requirements
Startup-friendly
Next-day funding

Cons

Rates can be expensive
Only two financing types to choose from

Why We Chose National Funding For Agricultural Business Loans

National Funding offers short-term business loans to a variety of business types, including agricultural businesses, in amounts from $5,000 to $500,000. And unlike other agriculture business loan types, such as an SBA loan or FSA loan, you don't need any collateral or down payment for a National Funding loan.

Whether funds are needed to hire agricultural workers, update farm equipment, add new crops, or upgrade livestock housing, a National Funding loan can help farmers with bad credit get the capital they need in as soon as 24 hours.

National Funding Rates & Fees

National Funding factor rates start at 1.1, which includes a 2% origination fee taken off the top of the loan. You’ll repay your farm business loan and fees over six to 15 months via daily ACH payments.

National Funding Eligibility Requirements

National Funding can approve applicants with credit scores as low as 600, though some lending products require a FICO of 650 or higher; you also need six months in business.

You do need to bring in at least $250K in annual revenues.

When To Use National Funding

You have a newer business and fair credit
You need a fast loan to buy equipment or other necessities for your business
You have strong, reliable business income

Loan Marketplace Review Methodology

We spend hours researching and evaluating each business loan marketplace we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Services 30%

Rates & Fees 15%

Eligibility Requirements 15%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lending marketplaces, we use a 39-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating.

Rates & Fees: 15% of the total star rating
Services: 30% of the total star rating
Eligibility Requirements: 15% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 10% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like the variety of lending products and partners available, terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the loan marketplace.

Read more about how we rate loan marketplaces.

Where Can I Get An Agricultural Loan?

Though the options above can provide alternative financing to farmers who can’t qualify for a government loan or a bank loan, you can also try to get a government agricultural loan.

Let’s go over some of your best options for getting a farm loan.

Government Programs For Agriculture & Farm Financing

The United States Department of Agriculture’s Farm Services Agency (FSA) has several farm loan programs to fit the needs of new and established farming and agriculture businesses.

Farm Operating Loans

The FSA’s Direct Farm Operating loan program provides loans for starting or operating a farm or ranch. This program offers up to $400,000 for reorganizing a farm, purchasing livestock, buying farm equipment, and paying operating expenses. Proceeds can also be used to improve or repair buildings, land and water development, and refinance farm-related debt.

FSA Microloans

There are also FSA microloan programs targeted at beginning farmers and farmers that operate non-traditional farms. These include Ownership and Operating microloans. The Direct Farm Ownership Microloan provides up to $50,000 for down payments on land, soil, and water conservation projects and the construction, repair, or improvement of farm and service buildings and dwellings. Direct Farm Operating Microloans provide up to $50,000 for tools, fencing, equipment, irrigation systems, and other operating expenses.

FSA Direct Farm Ownership Loans

FSA Direct Farm Ownership loans are another option for farmers. This agriculture business loan is available for up to $600,000. Through this program, the FSA provides up to 100% financing for the purchase or expansion of farms.

Guaranteed Farm Loans

The FSA also has Guaranteed Farm Loan programs that make it easier for farmers and ranchers to receive loans through commercial lenders. Through these programs, the FSA will guarantee up to 95% of a loan, putting less risk on the lender and increasing the borrower’s chances of approval. The FSA guarantees up to $1.776 million for farm ownership, conservation, and operating loans. For land contracts, up to $500,000 is guaranteed.

Emergency Loans

Finally, the FSA offers an emergency loan program. Through this program, up to $500,000 is available to cover expenses following a disaster, such as a flood, tornado, or drought. Loan proceeds are used to restore or replace property, cover production costs or living expenses, reorganize operations, and refinance non-real estate debt.

Grants For Farm & Agriculture Businesses

A grant is any money given — not loaned — by the government or other organizations to fund a project, start a business, and provide additional benefits to farm and agriculture businesses.

Farm Labor Housing Direct Loans & Grants

The USDA offers Farm Labor Housing Direct Loans & Grants. Funding from this program is used to develop housing for farm laborers when commercial credit can’t be obtained. Funds can be used to construct, improve, repair, or buy housing for domestic laborers. Funds can also be used to purchase and improve land, purchase furnishings, or pay construction loan interest. Eligible applicants can receive a need-based grant that pays up to 90% of project costs. Applicants can apply through the USDA website.

Value-Added Producer Grants

The USDA also offers Value-Added Producer Grants, which are used to expand marketing opportunities, create new products, and boost income. This program has working capital grants of up to $250,000 and planning grants of up to $75,000. Beginning or socially disadvantaged farmers and ranchers and small- or medium-sized farms may receive priority for these grants. Applicants can apply through the USDA website.

Sustainable Agriculture Research & Education Grants

Sustainable Agriculture Research & Education, or SARE, offers sustainable agriculture grants nationwide. Farmers and ranchers can submit a grant proposal to receive thousands of dollars in funding for their projects. Grants have been awarded in various relevant topics, including pest management, livestock production, soil quality, marketing, and energy. Applications can be submitted through the SARE website.

More Grant Opportunities For Farmers

Finally, the USDA also offers pandemic assistance for farmers. Some, but not all, of the USDA’s pandemic assistance programs are still accepting applications in 2023.

Note that grants are also available at the state level. Applicants can visit their state’s Department of Agriculture website to learn more about grant opportunities, how to apply, and eligibility requirements.

Alternative Loans & Financing For Agriculture Businesses

If you don’t qualify for a government loan or grant, other financing options are available for you, such as the online lenders we outlined above.

Learn more about the types of alternative business loans farmers can receive.

Equipment Loans

To keep your farm, ranch, or agriculture business running smoothly, you need the right tools and equipment. Backhoes, bailers, tractors, and other heavy equipment come at an expensive price — a cost that isn’t financially feasible for most farmers or ranchers. Whether upgrading old equipment or adding more to keep up with your expanding business, an equipment loan makes these purchases more affordable.

With an equipment loan, you can buy the equipment you need and put it into use immediately without having to pay the full price upfront. Instead, you’ll pay through affordable scheduled payments spread out over time.

Business Credit Cards

A business credit card is always a good financial resource to have on hand. With a business credit card, you’ll be able to purchase supplies, pay operating expenses, or cover an emergency expense without waiting for loan approval. Once approved, you’ll be able to use your card immediately anywhere credit cards are accepted.

After using your card, you’ll make payments each month toward your balance and interest. As you repay your balance, these funds are available to use again. Many business credit cards also have rewards programs. By responsibly borrowing and paying your balance off as quickly as possible, you can rack up points to use toward cash back, flights, hotels, and other rewards.

Installment Loans

With an installment loan, you receive a lump sum of money that gets repaid through scheduled installments. Repayments may be daily, weekly, or monthly based on the lender you select. Loan proceeds can be used for any business purpose, including purchasing supplies or inventory, buying livestock, or using the funds as working capital. Installment loans are best if you know the specific cost of your expense. If you are unsure of how much money you need, consider a more flexible option, such as a line of credit or business credit card.

The repayment terms, interest rates, and fees vary by lender. The most creditworthy borrowers typically receive the lowest rates and best repayment terms.

Short-Term Loans

When you apply for a short-term loan, you’ll receive one lump sum that you repay over a short period. While most short-term small business loans have repayment terms of one year or less, some alternative lenders offer terms of up to three years.

Short-term loans are repaid through daily, weekly, or monthly payments. In addition to paying off the principal balance, you’ll also pay what is known as a factor rate instead of interest. This fee is calculated into the cost of the loan.

Short-term loans are a good choice for farmers, ranchers, and other business owners because they are quick and easy to receive. Short-term loans are available for any business purpose. Because they can be funded quickly, they work well for working capital, filling seasonal revenue gaps, or covering an emergency expense. Alternative lenders offer more options than ever, so you can find the financing you need regardless of credit score, annual revenue, or other challenges.

Lines Of Credit

Sometimes, you need money, and you need it right away. In these situations, waiting days or even weeks can be a struggle. Instead of pursuing a loan that requires a lengthy application and underwriting process, apply for a line of credit that you can access whenever you need extra money.

A line of credit is a type of revolving credit that allows you to make multiple draws as needed. Once approved for a line of credit, you’ll receive a credit limit. You can request any amount of money up to and including this credit limit. Funds are then deposited into your business bank account — often within one business day. Interest or fees apply to the funds that have been used. As you pay down your balance, the funds are available for you to use again, similar to a credit card.

Real Estate Loans

Your farm or ranch is prospering, and it’s time for an expansion. The only problem is you don’t have the funds to purchase real estate or land. Instead of taking on this financial burden yourself, make the smart move and apply for a commercial real estate loan.

A commercial real estate loan is used for commercial property or land. After paying a down payment that is typically 10% to 20% of the total purchase price, your lender provides the remaining funds. You can use the land or property immediately while repaying the principal balance and interest over several years. The real estate purchased with loan funds is the collateral for the loan.

How To Get An Agriculture Business Loan

Now that you know what financing options are available to you, let’s learn what you need to start applying for farm loans and how to get a business loan as a farmer.

What You’ll Need To Apply For A Farm Loan

The business loan requirements for a farm loan are based on the type of loan you’re pursuing. For all loans, you will provide basic information about yourself and your business, such as your legal name, business name, address, phone number, social security number, and federal tax ID.

You will also need to prove that you are creditworthy and have the means to pay back the loan. Additional documentation to receive a farm loan may include:

Business and personal bank statements
Income statements
Business and personal tax returns
Balance sheets
Profit and loss statements
Business and personal credit scores

An application and all information and documentation must be submitted to your chosen lender. Underwriting and approval times vary based on the loan selected. Real estate and government farm loans may take several weeks or longer, while some alternative loans are instantly approved. To make the loan process more efficient, make yourself available to answer questions or provide additional information as needed.

What You Need To Qualify For A Government (USDA) Farm Loan

For all government farm loans, borrowers must be citizens, non-citizen nationals, or legal resident aliens in the US and specific US territories. All borrowers must be unable to obtain credit from other lenders before applying for an FSA loan. Borrowers must not be delinquent on any federal debts, except for IRS tax debt.

All borrowers must also have no previous debt forgiveness from the FSA. Potential borrowers with Federal Crop Insurance violations are not eligible for FSA loans.

All borrowers must also have sufficient credit history. The FSA does not use credit scores but instead looks at a borrower’s past loan repayment history with creditors and the federal government. A lack of credit history, isolated incidents of slow payments, or adverse issues that were out of the borrower’s control will not automatically disqualify the borrower.

To qualify for an FSA Microloan, all borrowers must have three years of farm management experience acquired within ten years of the date of applying for the loan.

Some loans require collateral. For FSA Operating Microloans, a lien on farm property or agricultural projects totaling 100% to 150% of the loan amount is required. For Direct Farm Ownership Microloans, the real estate purchased or improved with loan proceeds serves as the collateral.

Additional information is required to receive an Emergency loan. Borrowers must apply within eight months of the date the disaster was declared, submit declinations of credit from commercial lenders, and obtain crop insurance for the coming year to receive the loan.

FAQs: Best Agriculture Business Loans For Your Farm Or Ranch

Which bank is best for an agriculture loan?

The best bank for an agricultural loan is usually your own bank (or credit union) with which you already have an existing business relationship. If you don’t like your bank’s loan selection or want to explore other options, your next best bet for a farm business loan is finding a local SBA-partnered bank.

What are the cons of a USDA loan?

USDA loans for land or other agricultural business purposes have strict requirements that not all small farming businesses will be able to meet. Borrowing requirements can include collateral, three+ years in business, and proof that you can’t get credit from other lenders. USDA loans also have a longer time to funding than other types of business loans (such as online loans) and tend to max out at $300,000 or $500,000.

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Shannon Vissers

Lead Staff Writer at Merchant Maverick

Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.

@ShannonVissers

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1. Lendio

❮ ❯

Best equipment financing loans
Interest rate: 7.5%+
FICO: 520+

2. OnDeck

❮ ❯

Best working capital loans
APR: 29.9%+
FICO: 625+

3. BusinessLoans.com

❮ ❯

Best invoice financing & factoring
APR: Not disclosed
FICO: N/A

4. Capital One Spark Cash Plus

❮ ❯

Best business credit card
APR: N/A
FICO: N/A

5. SmartBiz

❮ ❯

Best SBA loan
APR: 11.25%+
FICO: 650+

6. Fundbox

❮ ❯

Best line of credit
Interest rate: 4.66%+
FICO: 600+

7. National Funding

❮ ❯

Best no collateral loans
Factor rate: 1.1+
FICO: 600+