Cooperatives added as eligible borrowers and statutory lending caps removed, as Ag-LINK continues first-ever year-round application period
COLUMBUS – In response to the final passage of House Bill 440, legislation to advance the Ohio Gains Initiative, Ohio Treasurer Robert Sprague today announced important updates. day of the long-standing Ag-LINK program.
As part of the legislation, agricultural cooperatives (coops) have been added as eligible Ag-LINK borrowers for the first time in the program’s history. Programmatic and lending caps were also removed from the law to ensure the program keeps pace with changing economic conditions.
Additionally, in February, Treasurer Sprague announced that for the first time ever, applications will be accepted year-round to provide borrowers with greater flexibility and access to lower-cost capital when they need it. most needed.
“For decades, Ag-LINK has supported Ohio farmers by lowering the cost of doing business,” said Treasurer Sprague. “As they face new challenges caused by crippling inflation and massive supply chain issues, we have taken Ag-LINK to the next level to better serve their needs. We are proud to make these much-needed improvements at this critical time and serve the next generation of Buckeye State farmers.
In the first quarter of 2022, Ag-LINK:
.Supported 530 loans to Ohio agricultural businesses in 54 counties totaling over $103 million
.Ohio Agriculture Businesses Saved at Least $518,453 (Based on 0.50% Minimum Loan Forgiveness in Q1)
The Ohio Treasurer’s Office administers the Ag-LINK program to help farmers, agribusinesses, and now agricultural cooperatives fund initial operating costs for feed, seed, fertilizer, fuel , equipment and other costs.
Prior to the passage of HB 440, Ohio law limited individual loans available through Ag-LINK to only $150,000 per year. Going forward, loan limits will be assessed and set on an annual basis by the Ohio Treasurer’s Office.
Each year will be divided into four terms. New interest rate cut figures are announced at the beginning of each quarter to reflect real-time economic conditions. For the current quarter, Ag-LINK is offering a 0.5% interest rate reduction on agricultural business loans from eligible banks, credit unions and agricultural lenders.
Those interested in Ag-LINK should contact their financial institution to begin the online loan application process. You can find more information about the Ag-LINK program online here.
The Ohio Gains Initiative puts the state’s balance sheet to work for the people of Ohio through innovative investment strategies that will ensure a more prosperous future for Ohio. House Bill 440 includes investment reforms that strengthen support for the state’s agricultural community, health systems, and institutions of higher education. The legislation was sponsored in the Ohio Senate by Senators Michael Rulli and Jerry Cirino and in the Ohio House by Representatives DJ Swearingen and Andrea White.
More information about the Ohio Gains initiative can be found online here: https://tos.ohio.gov/ohiogains