Dairy farmers and other small business owners are seeking credit from some rather nontraditional lenders these days.
According to a recent article in the Milwaukee Journal-Sentinel, fewer and fewer private lenders want to make farm loans, especially as rural banks have merged with larger, regional banks. This has left farmers with fewer places to turn to for financing, and has lead to producers looking for new places — like programs from the Small Business Administration — for credit to see their business through the financial downturn.
“Nearly 400 Wisconsin small businesses have tapped the America's Recovery Capital Loans program, including dairy farms that were profitable in 2008, but saw their income plummet this year when farm-milk prices fell more than 50 percent,” the article says.
Source: Milwaukee Journal-Sentinel