Loan proceeds which are guaranteed by the Department or have received an interest deferral shall be used for the following eligible agricultural purposes:
- (1) Acquisition, construction or rehabilitation of farmland and farm structures located on farmland within this Commonwealth owned or leased by a family farm enterprise. The term of the loan may not exceed 20 years.
- (2) Acquisition, repair or replacement of capital assets, such as equipment and livestock to be used on farmland within this Commonwealth by a family farm enterprise. The term of the loan may not exceed 7 years.
- (3) Working capital for the acquisition of fertilizer, seed, livestock feed and other supplies which will be used on farmland within this Commonwealth by a family farm enterprise. The term of the loan may not exceed 1 year.
Cross References
This section cited in 7 Pa. Code § 138a.6 (relating to condition of loan guarantees); and 7 Pa. Code § 138a.7 (relating to conditions on interest deferrals).