Aggie Bond Program
The purpose of the Beginning and Expanding Farmer Loan Program (aka Aggie Bond Program) is to provide affordable financing to new farmers for financing capital purchases. Business Oregon works with the borrower's local lender to provide this financing. Business Oregon issues a tax-exempt bond for the amount and with the terms of the loan. Because the interest income to the lender is exempt from federal income tax, the lender is able to charge a lower rate to the borrower. The loan and the bond are secured solely by the collateral required by the lender and are not obligations of Business Oregon or of the state of Oregon. Because the lender assumes all credit risk, the lender makes all credit decisions.
Loans may be used to acquire agricultural land, new depreciable property or used depreciable property in conjunction with agricultural land. Aggie Bond proceeds may be used to finance the following agriculture related purposes:
- Up to $250,000 for the purpose of depreciable agricultural property (including equipment, livestock, feed, fertilizer and seeds) for first time farmers;
- Up to $62,600 on used equipment for first time farmers; and/or
- Up to $509,600 for farmland purchases.
Lenders with questions about issuance fees and project structures should contact Business Oregon.
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