Thursday, April 17, 2014

USDA, Farm Service Agency – Youth Loan Program available in Guam and CNMI

FSA's Youth Loan program helps promotes entrepreneurship by giving participants practical experience in planning and carrying out agriculturally-related, income-producing projects.

Youth must be no younger than 10 no older than 20 when they apply. They must also have a project adviser to provide general oversight on project. Youth participants must be able to plan, manage, and carry out a project and have a parent or guardian agree to the applicant’s participation if they are a minor.

A wide variety of projects qualify as "agriculturally related" enterprises. Here are a few examples of how loan funds might be used:

• Buy farm produce from a local farmer to make jams or jellies to sell at the farmers market or during a local fair.

• Pay a local graphic arts designer to create an attractive label for the product.

• Buy the raw materials needed to weave "Made in Guam" baskets at the Chamorro Village.

• Buy and raise traditional Chinese herbs to package as teas or health supplements to sell to the local Chinese community.

• Purchase 3 baby pigs plus the feed and medicines needed to raise them for sale.

Other details include:

• The maximum loan to pay expenses is $5,000;

• The project must generate the income needed to repay the loan.

• Security requirements:
Applicants must sign a promissory note and be responsible for repaying the loan.

Loan collateral is normally the products produced for sale, but could include other property.

Loan payments are based on the scheduled sale of the products.

•FSA uses fixed interest rates.
For more information, please contact:

Fred San Nicolas, Assistant Manager,

Farm Loan Programs
Doreen Rivera, Program Technician,

Farm Loan Programs
Telephone: 671-300-8552

Facsimile: 855-356-9491
USDA is an Equal Opportunity Provider and Employer