Iowa Finance Authority
Programs

Loan Participation Program

The Loan Participation Program (LPP) was established in 1996 to assist low income farmers secure loans and make down payments. IADD’s participation can be used to supplement the borrower’s down payment, thereby helping a farmer secure a loan more readily. The lender’s risk is also reduced since the IADD provides a "last-in/last-out" loan participation for the financial institution.

Effective August 1, 2017, the interest rate will be equal to Wall Street Journal Prime as of July 1, going forward the rate will adjust annually on February 1, to be equal to Wall Street Journal Prime as of January 1. The rate will lock at the time of IADD approval and be fixed for the full 10 year term. Borrowers can achieve lower interest rates by using this program in conjunction with the Beginning Farmer Loan Program. 

Application/Approval Procedures

  • Obtain a copy of the Loan Participation Program (LPP) Application
  • Complete application with lender
  • Submit the completed application and $100 application fee to the IADD office, along with the following items:
    • Joint Loan Participation Program application (Signed by all borrowers and lender)
    • Financial statement less than 1 month old (Signed by all borrowers and witnessed by lender)
    • Completed Beginning Farmer background form
    • Pro-forma (after-closing) financial statement
    • Global Projected cash flow statement
    • Prior three year's tax returns
    • Credit Bureau report on the borrower
  • The IADD Board will review the application; if approved, a Conditional Commitment to Participate will be sent to the lender.
  • After completion of the LPP Conditional Commitment, the loan may be closed. The lender will then continue to work with the farmer to service the loan.
Notice Notice
Close
  • Maximum net worth is $645,284 as of January 1, 2017
  • Effective August 1, 2017, the interest rate will be equal to Wall Street Journal Prime as of July 1, going forward the rate will adjust annually on February 1, to be equal to Wall Street Journal Prime as of January 1. The rate will lock at the time of IADD approval and be fixed for the full 10 year term. 
Notice Contact
Close

Steve Ferguson | Program Planner

Tammy Nebola | Program Planner