The Missouri Agricultural and Small Business Development Authority provides a 50 percent first-loss guarantee on collateralized loans up to $250,000 that lenders make to independent livestock producers to finance the acquisition, construction, improvement, rehabilitation, or operation of land, buildings, facilities, equipment, machinery, and animal waste facilities used to produce poultry, hogs, beef or dairy cattle or other animals in a single purpose animal facility.

How Does the Program work?

Producers wishing to secure a loan through the loan guarantee program must:

  • Apply for a loan with an eligible lender
  • The participating lender must decide whether a prospective borrower meets its requirements for a loan if a 50 percent first-loss guarantee is provided through the Single-Purpose Animal Facilities Loan Guarantee Program
  • After deciding to make a guaranteed livestock loan, the lender must submit an application to the authority

Who Is Eligible?

  • A borrower must be a legal Missouri resident who is at least 18 years old
  • Borrower must be able to provide proof of citizenship, identity and residence. If the borrower employs laborers, he/she must also provide proof of enrollment and participation in the federal work authorization program.
  • An independent livestock producer is defined as someone engaged in producing poultry, livestock, or earthworms that is either owned or produced under contract, but who is not an integrated producer
  • The project must be located in Missouri

Loan Amount and Terms

  • Loans made under the guarantee program may be for an amount up to $250,000 with an initial guarantee available for up to 10 years- refinancing or restructuring of guaranteed loans for longer terms may be considered
  • The interest rate charged to a borrower will be negotiated between the lender and the borrower, but cannot exceed the rate normally charged by the lender for similar loans
  • A borrower must provide at least 10 percent of the cost of the project
  • A borrower must provide a first deed of trust or lien on the financed property, or other adequate collateral, to the lender


A borrower cannot be:

  • An integrated poultry producer
  • An integrated cattle producer with more than 5,000-head feedlot capacity
  • A swine producer with more than 1,200 sows. If two or more independent producers organize a networking agreement to produce swine, the 1,200-sow limit would not apply


At the time of the loan closing, the lender will collect a one-time loan participation fee of one percent and a guarantee fee of one-half of one percent from the borrower and pay it to the authority. The lender will also collect a loan guarantee fee of one-half of one percent per annum of the outstanding principal from the borrower on the anniversary of the loan guarantee and pay it to the authority.

Other Information

Borrowers qualifying for the Single-Purpose Animal Facilities Loan Guarantee Program may also qualify for the MOBUCKS Program administered by the state treasurer’s office. The MOBUCKS Program makes funds available at reduced interest rates to lenders who in turn pass the savings along to agricultural borrowers. To find out more about the MOBUCKS Program, call the state treasurer’s office at (573) 751-2372 or visit their website at

Prior to a loan loss payment being made, the lender shall provide proof of compliance (copy of MOU) with the federal work authorization program (E-verify).

The authority also administers the Animal Waste Treatment System Loan Program for livestock producers.

Application Information