Congressman Brad Finstad of Minnesota’s 1st district and Congressman Adam Gray of California’s 13th district have introduced H.R. 7426, known as the USDA Express Loan Act. The bill aims to expand the EZGuarantee Loan Program under the U.S. Department of Agriculture (USDA) by speeding up approval times for certain guaranteed loans, with the goal of providing farmers, ranchers, and rural communities faster access to credit.
The proposed legislation requires USDA to offer lenders a simplified application for real estate and operating guaranteed loans up to $1 million. It also mandates that USDA notify lenders within five business days about whether an application is approved or denied. In return for this expedited process, lenders would receive a reduced guarantee on these loans—ranging from 50 to 90 percent—after making their own credit determination.
The bill also directs USDA to establish an accelerated application process for Business and Industry guaranteed loans for rural entities seeking up to $400,000. Loans up to $600,000 could be included in this process if USDA determines there is no significant increased risk of default.
“The USDA Express Loan Act will enable USDA to implement a timelier, more efficient loan approval process for the EZGuarantee Loan Program, equipping farmers with the information they need to make financial decisions for their operations,” said Rep. Finstad. “I’m proud to introduce this legislation that will cut red tape in the USDA loan process, while expediting access to credit for our farmers who rely on access to capital in order to feed and fuel the world.”
“I am proud to have worked across the aisle on such an impactful and commonsense piece of legislation. The USDA Express Loan Act will optimize farmers’ access to capital, ensuring they have the resources necessary to make important decisions regarding their operations,” said Rep. Gray.
Christy Seyfert, President and CEO of Farm Credit Council, commented: “Farm Credit thanks Congressmen Brad Finstad and Adam Gray for introducing the USDA Express Loan Act. This important legislation will require the Secretary of Agriculture to create an expedited process for Farm Service Agency (FSA) farm ownership and operating guarantee loans. This will ensure loans made by preferred lenders, like Farm Credit, can be approved more quickly and will streamline cumbersome paperwork. By cutting red tape, this commonsense legislation will help ensure farmers and ranchers get the credit they need to start or expand their operations — strengthening rural communities and the farm economy in the process.”
FSA Guaranteed Farm Loan Programs assist family farmers and ranchers in obtaining loans from commercial lenders approved by USDA at reasonable terms so they can buy farmland or finance agricultural production.
Brad Finstad has represented Minnesota’s 1st district in Congress since 2022 after replacing Jim Hagedorn. He previously served in Minnesota’s House of Representatives from 2003 until 2009 and holds a BS degree from the University of Minnesota.
The full text of H.R. 7426 is available online.
The proposed program would set a maximum loan amount at $1 million with guarantees between 50% and 90%.
