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Loans & Leases

 

Customized Ag Lending Solutions

At United Bank of Iowa, we’re proud to say we’ve been a part of the agricultural industry for generations – it’s not just a business, it’s a way of life. Our lenders work hard to understand your operation and find the solution that’s right for you and your family. 


Operating Loans (Lines of Credit) 

An excellent way to manage seasonal cash flow cycles and cover short-term financing needs for farm supplies, business expenses, and more. With a maturity of 12 months or less, you can manage your loan by borrowing only the amount you need when you need it. 


Together we’ll:

  • Develop a cash flow projection for your operation
  • Set up a payment plan designed around your cash flow projection and financial situation


Our loans offer:

  • Interest accrual only on funds borrowed
  • Revolving and non-revolving options
  • No minimum balance and no pre-payment penalty


Real Estate Loans 

If you want to purchase land to expand your operations or agribusiness, you’ve come to the right place. Our experienced lenders understand what it takes to manage a successful operation.


Together we’ll:

  • Develop a comprehensive understanding of your operation and your financial situation
  • Decide which option best fits your long-term needs
  • Develop an affordable repayment schedule that works for you


Our loans offer:

  • Wide variety of highly competitive interest rate products
  • Flexible repayment terms
  • Local decisions based on your operation


Installment Loans 

Our wide array of installment loans will help you meet intermediate-term needs for purchases of machinery, equipment, vehicles, and breeding livestock, and are an excellent option for refinancing debt. 


Together we’ll:

  • Decide the repayment terms based on your current financial situation 
  • Choose the type of loan designed for your specific operation

Our loans offer:

  • Flexible payment schedules 
  • Fixed and variable rates


Beginning Farmer Loans 

Thinking about getting into farming and don’t know where to start? Our lenders will assist with the application process to get you started on your path to success. Our lenders are knowledgeable and experienced with helping beginning farmers in the agency programs listed below:


USDA Farm Service Agency (FSA) Loans

Targets a portion of its loan funds to small and beginning farmers and ranchers. It’s an excellent choice for those who might need assistance securing funding through traditional lending channels.


Some of the requirements for this program are as follows:

  • Has not operated a farm or ranch for more than 10 years
  • Does not own a farm or ranch greater than 30 percent of the average size farm in the county as determined by the most current census for agriculture
  • Substantially participates in the operation


The key benefits of this program is to allow a lower down payment, while improving the cash flow with extended terms, and receiving a lower fixed rate on a portion of the debt. 


For more information go to http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/index


Iowa Finance Authority IADD’s Beginning Farmer Loan Program

The primary benefit of this program is interest rate assistance. For qualifying applicants, IFA provides a tax-exempt bond to the bank which is used to fund the loan, allowing the bank to finance the loan at a low, fixed rate. Some of the requirements for this program are as follows:

  • Must be at least 18 years of age
  • Does not own a farm or ranch greater than 30 percent of the average size farm in the county as determined by the most current census for agriculture
  • Must fall within Net Worth guidelines


For more information go to http://iowafinanceauthority.gov/IADD


Guaranteed Farm Loans 

FSA guaranteed loans are an option for producers who may not meet the normal underwriting criteria. UBI will prepare the documents with the client and FSA to obtain a guarantee which will allow all the parties to help achieve the client’s goals.


Loan options:

  • Guaranteed Farm Ownership (FO) loans can be used to purchase farmland, construct or repair buildings and other fixtures, develop farmland to promote soil and water conservation, or to refinance debt.
  • Guaranteed Operating Loans (OL) can be used to purchase livestock, farm equipment, feed, seed, fuel, farm chemicals, insurance, and other operating expenses. They can also be used for building improvements, costs associated with land and water development, and to refinance debts under certain conditions.


Amounts on FSA guarantee OL or FO loans are adjusted annually based on inflation.


To learn more contact us or visit http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/index


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