Dear GO TEXAN Members,
The Texas Agricultural Finance Authority (TAFA) was created in 1987 (through HB 49) as a public authority within the Texas Department of Agriculture (TDA). The program is designed to provide financial assistance for the expansion, development and diversification of production, processing, marketing and exporting of Texas agricultural products.
Through the Agricultural Loan Guarantee (ALG) program, TAFA provides loan guarantees to lenders for eligible applicants who wish to establish or enhance their farm and/or ranch operation or agriculture-related business. ALG is designed to incentivize and encourage lenders to extend credit to farmers, ranchers, and agribusiness owners who wish to establish, improve or enhance an agricultural operation in Texas. The program is used to add protection against reasonable risk associated with an agricultural loan.
The ALG program may be an option for agricultural businesses that are ineligible for the Small Business Administration’s Relief Programs. For those seeking financing, the first step is to visit with a lender as TDA does not issue any loans directly to a borrower. The lender will submit the application to TDA on behalf of the borrower. If you have any questions, please email email@example.com.