FSA makes loans of up to $5,000 to individual rural youths to establish and operate income-producing projects of modest size in connection with their participation in 4-H clubs, FFA, and similar organizations. It must be planned and operated with the help of the organization advisor, produce sufficient income to repay the loan, and provide the youth with practical business and educational experience.
These loans may be used to (1) buy livestock, equipment, and supplies; (2) buy, rent, or repair tools and equipment; and (3) pay operating expenses for running the project.
The youth loan provides many benefits, including an opportunity for youth to learn how to handle credit responsibly and develop a credit history at an early age. The current youth loan interest rate is 1.25 percent.
The application process for the youth loan program is simple. Anyone interested in applying for a youth loan should complete form FSA 2301, “Request for Youth Loan.” The form must be signed by the project advisor and a parent or guardian. This form is available online at www.fsa.usda.gov or can be picked up from a local FSA office.
For additional information about the youth loan program, contact the Pettis County FSA office at (660) 826-3339 ext. 108. All loan programs of the Farm Service Agency are conducted on a non-discriminatory basis.