February 2025

Recent Example of Success (RELOC)

• Currently assisting a hog farmer in Kalona, IA who had a need to pay off a high interest (15%) machinery loan. We were able to work with the bank to structure a large revolving line of credit (RELOC) that pays off his existing debt and provides for enough un-tapped credit to help him “bridge the gap” in his seasonal manure hauling income.

Structure

• The product offering is a 10-year term, revolving line of credit secured by a first mortgage of ag real estate.

• Interest only

• The loan rate will be fixed for five (5) years, based on the rate sheet at the time of approval, then will automatically adjust annually with a NOTE RATE of Prime plus 1.50% on the loan anniversary date.

• In years 6 through 10, the rate will adjust annually

• Interest shall be billed semi-annually

• Open Prepayment

Information Needed / Credit Approval Process

• Tax Returns - minimum of the last 3 years

• Balance Sheet - current, market value within 90 days for all applicants.

• Credit Report - dates within 90 days

Rates

• 6-8%

~ Build a relationship with your lender – Beyond increasing your access to capital when it’s needed, another benefit of using a line of credit is building a strong relationship with your lender. At renewal time, your annual meeting with your lender can deepen the understand of your operation and borrowing needs. Establishing a foundation of trust between borrower and lender can make all the difference when unexpected challenges arise.