USDA FSA Microloan Program
USDA Farm Service Agency
Up to $50,000
Fast USDA loans for small-scale farmers
Simplified FSA direct loans up to $50,000 for small and beginning farmers, urban farmers, and specialty crop producers who need a fast, low-paperwork path to operating capital. Uses a streamlined application with fewer financial forms than standard FSA direct loans. Ideal for market gardeners, CSA farmers, aquaponics operations, beekeepers, and beginning farmers building credit history before accessing larger FSA programs.
- Funding type
- Loan
- Level
- Federal
- Amount range
- $1,000 – $50,000
- Realistic amount
- Most microloan recipients borrow $10,000–$35,000. Market gardeners and specialty crop operators commonly receive $15,000…
- Deadline
- Rolling — apply any time at your local FSA county office. No application deadlines.
- Status
- active
- States
- Nationwide
- Payment model
- loan
Who qualifies
- Must be a family farm operator (individual, partnership, joint operation, or corporation)
- Cannot have other USDA direct farm loan or farm ownership loan balances that together with the microloan would exceed $50,000
- Must be unable to obtain sufficient credit from commercial lenders
- Farming experience: beginning farmers need only 1 year of experience; experienced operators need at least 1 crop year in the past 10 years
- Includes non-traditional farm operations: urban farms, aquaponics, market gardens, rooftop gardens, beekeeping, and other specialty operations
- Must demonstrate repayment ability from farm income or combination of farm and off-farm income
- Cannot have caused a loss to FSA or have outstanding federal judgments
Hard requirements
- US citizenship required
What it covers
Eligible expenses
- Seeds, plants, and propagation materials
- Fertilizers, soil amendments, compost, and growing media
- Pesticides, herbicides, and integrated pest management supplies
- Small farm equipment and tools (transplant trays, irrigation equipment, hand tools, row covers)
- Market stall fees and farmers market costs
- CSA startup costs (packaging, delivery supplies, member management)
- Beekeeping supplies (hives, protective equipment, extraction equipment)
- Aquaponics and hydroponic system components
- Feed, bedding, and health supplies for livestock
- Crop insurance premiums
- Family living expenses of the operator
Ineligible expenses
- Land or real property purchase
- Major construction or permanent improvements
- Refinancing existing FSA debt
- Non-farm expenses
- Equipment purchases that would push outstanding balances over $50,000
How to apply
-
1
Contact your local FSA office or visit farmers.gov
Schedule a meeting at your FSA county office. Microloan applications are assisted by FSA loan officers. Find your office at farmers.gov/contact/fsa-service-center. Urban farmers with no local agricultural FSA office should contact the nearest office — FSA has expanded access for non-traditional operations.
~2 hrs
-
2
Prepare streamlined financial documentation
Unlike standard FSA direct loans, microloans require only: farm income summary (tax return excerpt or farm records for last 1 year), a list of assets and liabilities, and a simple cash flow showing how the loan will be repaid. Business plans and 3-year financials are not required — this is the key streamlining vs. standard FSA loans.
~2 hrs
-
3
Complete FSA microloan application
FSA form FSA-2001 is used, but with fewer supplemental schedules than standard direct loans. The loan officer assists with completion. You'll describe the purpose (what you're buying, what operating costs you're covering) and provide collateral description (equipment, crops, livestock the loan will purchase or support).
~2 hrs
-
4
Approval and disbursement
FSA targets 30-day processing for complete microloan applications. Upon approval, funds are disbursed directly to the borrower or to designated suppliers. Interest rate is set quarterly — check with your FSA office for the current rate.
~2 hrs
Industry & certifications
NAICS codes: 111110, 111120, 111219, 111310, 111332, 111411, 111419, 112910
Urban farmers and market gardeners who've been told they don't qualify for farm loans often DO qualify here — FSA explicitly includes non-traditional operations like aquaponics, rooftop farms, and beekeeping.
Deadline & timing
Rolling applications year-round. Microloans are designed for fast processing — FSA targets 30-day turnaround for complete applications. Apply 30–60 days before the need (planting season, equipment purchase).
Programs that stack well
- USDA FSA Direct Farm Operating Loan
- USDA Beginning Farmer and Rancher Development Program (BFRDP)
- USDA Value-Added Producer Grant (VAPG)
- Usda Farmers Market Promotion Program
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.