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Low-Interest Loans for Illinois
Farmers and Agricultural Professionals |
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A Program from the
Illinois State Treasurer's Office |
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About the Cultivate Illinois Program |
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| The Cultivate Illinois Program offers affordable
financing to Illinois farmers and agricultural professionals through three
loan options: Cultivate Annual, Cultivate Long-term and Cultivate
Alternative (see below for brief descriptions). For each approved
project, the Treasurer's Office deposits funds at a discounted rate into
an eligible financial institution. The Treasurer's Office "buys
down" the interest rate, enabling borrowers to secure below-market rates
for either one year or up to the first five years of the loan. The
official website for the Cultivate Illinois Program may be accessed
through www.treasurer.il.gov.
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Cultivate Annual Loan Option |
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| Cultivate Annual is a one-year program that assists
farmers with typical operating expenses and annual start-up costs
associated with seed, fertilizer, plants, crop insurance and other
expenses. There is a limit of two loans per fiscal year not to
exceed $200,000 per farmer and $400,000 per farm operation. |
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Cultivate Long-Term Loan Option |
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| Cultivate Long-Term is designed to help with capital
expenditures such as farm equipment and non-annual construction,
livestock, seed, feed, fertilizer, plants, chemicals, cash rent and crop
insurance. The limit for Cultivate Long-Term is $200,000, and only
one loan may be approved per fiscal year. The initial rate is
guaranteed for two years. If a compliance check is successfully
passed at the end of two years, the loan may be extended for another three
years. The Treasurer's Office evaluates applications based on a
variety of factors, including: the availability of state funds, need,
whether the applicant has a down payment as part of the transaction,
whether the majority of the applicant's income comes from the farming
operation, the size of the loan, and the expected savings in interest for
the farmer. |
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Cultivate Alternative Loan Option |
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| Cultivate Alternative encourages innovation in
agriculture, whether through vineyards, "pick your own" farms, or
specialty crops. Like Cultivate Long-Term, the loan limit is
$200,000 and the initial term is two years, but it can be extended for an
additional five years. New ideas are encouraged. |
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What is the Interest Rate? |
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| The Treasurer's Office quotes the discounted deposit rate
available at the time the deposit is made. Deposit rates are
calculated daily and are available by visiting
www.treasurer.il.gov and
clicking the Daily Rates link. The financial institution may not
mark up the deposit rate by more than 2.75 percent on annual loans and 3
percent on long-term and alternative loans. |
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How to Apply |
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| 1. Contact the Treasurer's Office for an overview
of the program. |
| 2. Apply for a loan at a participating financial
institution and obtain an agreement to use the program. |
| 3. Complete and submit a program application and
all required documentation to the Treasurer's Office. |
| 4. Your financial institution must submit a
completed application for a linked deposit and a project information form. |
| 5. The Treasurer's Loan Committee, which meets
twice a month, will review your application for approval. |
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More Information |
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| All-American Associates, Inc. is not associated with the
Cultivate Illinois Program, which is funded by the State Treasurer's
Office. Much more information about these low-interest loan programs
can be obtained by visiting the State Treasurer's Office website at
www.treasurer.il.gov.
Follow the Cultivate Illinois link for program applications, a list of
terms and eligibility, a list of participating financial institutions, and
contact information. |
