On Sept. 24, Chris P. Beyerhelm, deputy administrator for Farm Loan Programs for the USDA, notified Farmers Bank of Northern Missouri that they have been granted Preferred Lender Status for the USDA’s guaranteed farm loan programs.
The Preferred Lender Program is a program for elite agricultural lenders who have experience with the USDA guaranteed loans.
PLP was developed to reward experienced lenders by streamlining and adding flexibility to the loan application and servicing requirements. USDA reviews and approves lender’s credit management system and then the lender originates and services guaranteed loans based on their procedures.
To qualify for the PLP designation, a lender must have made at least 20 USDA guaranteed loans in the past five years and have a low historical loss rate. The lender must have a proven record of submitting sound loan proposals and demonstrated ability to service guaranteed loans. USDA’s Farm Service Agency administers the PLP.
With this designation, Farmers Bank of Northern Missouri becomes only the eighth lender granted PLP status in Missouri based on June 1, 2012 data and the only one based in Missouri.
In Iowa Farmers Bank became the 26th lender with PLP designation.
Now as a Preferred Lender, Farmers Bank of Northern Missouri will have less paperwork to deal with and more time for providing credit to Missouri and Iowa farmers.