EQUIPMENT SHED LOAN PROGRAM
The AADA Equipment Shed Loan Program is a low-interest loan program for Alabama farmers to provide financial assistance for the construction of an approved new structure for use on farms in Alabama. Access to an equipment shed enables a farmer to protect equipment and subsequently receive substantial economic benefits and improved operational characteristics. Equipment shed plans must meet certain standard criteria with said plans required to be reviewed and approved by an AADA representative prior to start of construction.
Allowable funding of the direct project cost is limited to a maximum of approved loan amount (to be verified by receipts.) As a guideline, only one general category has been established based on estimated cost. Up to $35,000 can be borrowed depending on structure size, actual construction materials, and verifiable cost receipts.
All loans will be for a maximum of five years at a simple annual interest rate of 3.5 percent. A signed promissory note denoting annual payments will be required along with verifiable first position on security that sufficiently collateralizes the loan. Proof of insurance and insurance assignment to AADA must be provided. A $50 application fee will be charged to cover collateral filing fees and other administrative costs.
If you would like to apply for a loan under this program, complete the Loan Application and attach a $50 application fee payable to Alabama Agricultural Development Authority, and submit to
Alabama Agricultural Development Authority
1445 Federal Drive
Montgomery, AL 36107-1123
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