EQUIPMENT SHED LOAN PROGRAM 1445 Federal Drive Montgomery, AL 36107 334-240-7245 Fax: 334-240-7270 Email: michelle.mulcahy@agi.alabama.gov www.aada.us
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 forward to Dr. John C. Gamble Alabama Agricultural Development Authority 1445 Federal Drive Montgomery, AL 36107-1123
EQUIPMENT SHED LOAN PROGRAM GUIDELINES 1. Loans are for a 5-year payoff or sooner with no penalty. 2. Loan interest rate is 3.5%. 3. Each shed should be of sufficient height, length and width to be able to accommodate necessary equipment. 4. All equipment sheds must be new construction... renovations of old structures will not be approved! 5. The design of each shed is left to a large extent to the producer and their specific needs, but must meet minimum AADA approved specifications. 6. Maximum amount of loan is up to $35,000 depending on type construction, size of building, and verified by actual construction receipts. 7. If equipment shed costs exceed the approved loan amount, these additional costs must be covered by the program applicant. 8. Applicant s short-term lender and contact person must be provided to enable a limited credit check. 9. AADA representatives will inspect the proposed shed site prior to construction, verify adequate collateral, and will inspect the finished project. All applicants must receive a Notice to Proceed prior to initiation of project work! 10. Once Item #9 criteria are satisfied, project receipts are received and verified by AADA personnel and a promissory note is signed, a check will be mailed to the project owner directly from the AADA office. 11. Proof of insurance and insurance assignment to AADA must be provided.
LOAN PROGRAM APPLICATION (check one) Loan Program Funding Limits Cattle Working Facilities $20,000 Maximum Commodity Barn $7,500, $15,000 or $22,500 Hay Barn $12,500 or $25,000 Equipment Shed Up to $35,000 Irrigation Negotiable Special Negotiable (A) Name and of Farm Operation Name of Individual/Farm (AADA USE ONLY) App # Received App Fee Rec Approval $ Organizational Type (Corporation, Partnership, Sole Proprietorship) City, State Zip County Name of person(s) responsible for the operation of the above farm: Name Title Telephone E-mail (B) Name of Short-term Lender Contact Person Telephone (C) City, State Zip Describe purposed use of loan proceeds and why loan funds will assist to enhance farm production/efficiency: (D) Describe your overall farm operation: Row Crop Acres (be specific): Hay/Forage Acres (be specific): Livestock (be specific): Vegetable/Fruit (be specific): Farm Equipment (specific shed needs): (E) Proposed Loan Security Estimated Value (F) (G) Loan Funds Requested Certification of Farm The undersigned hereby attests to the accuracy of the data herein and certifies that, if accepted, the loan will be used exclusively for the project herein described that meets approved specifications and field inspection criteria as approved by the Alabama Agricultural Development Authority (AADA). Project must be completed within 120 days from the date of loan approval. Also, approval is given for AADA representative to contact short-term lender regarding applicant s credit. A $50 application fee payable to the Alabama Agricultural Development Authority is to be included with this application. Authorized Signature Date
RELEASE OF INFORMATION TO: Short-term Lender City, State, Zip Phone Number RE: Name of Individual/Farm SS# or EIN# City, State, Zip County This document authorizes you to make available to Dr. John C. Gamble, who is the Executive Director of the Alabama Agricultural Development Authority, or his designated representative, any and all credit related and financial status documents in your possession which pertain to me and would be available to me at my request. Signature Date
Name and of Farm Operation SECURITY INTEREST FORM Name of Individual/Farm SS# or EIN# City, State Zip County Name of person(s) responsible for the operation of the above farm: Name Title Telephone Security for Loan (be specific) Equipment: 1. Description Make Model Serial Number Estimated Value 2. Description Make Model Serial Number Estimated Value 3. Description Make Model Serial Number Estimated Value Does this equipment/property have any other lien against it? Yes No If yes, list name and address of lender: Signature of Borrower Date Verified by AADA Representative Date
NOTICE TO APPLICANTS Be advised that the Alabama Agricultural Development Authority (AADA) is a separate public corporation that was authorized by legislative action, but receives no public funding. AADA is a separate Authority and does not come under the Department of Agriculture and Industries oversight or funding. AADA s limited funding depends on timely payments on loan funds which, in turn, are accumulated and loaned to other deserving agriculture interests. Prompt loan payments are critical for the ongoing abilities and success of the Authority.
Example Equipment Sheds Provided by Iowa State University For more information visit http://www.public.iastate.edu/~mwps_dis/mwps_web/ma_plans.html 40' x 104' Machine Shed, MWPS-74143 Building has machine shed, shop, storage areas, and office. Building uses 6" x 6" poles, 2" x 4", and 2" x 6" construction. 48' x 96' Machine Shed, MWPS-74146 Plans show machine shed, shop, storage areas, and office. Building uses 6" x 6" poles, 2" x 4", and 2" x 6" construction. 60' x 96' Machine Shed, MWPS-74147 Building has machine shed, shop, storage areas, and office. Building uses 6" x 6" poles, 2" x 4", and 2" x 6" construction. 30' x 72' Machine Shed, MWPS-74148 Plans show 16' and 24' wide openings and optional shop. Building uses 6" x 6" poles, 2" x 4", and 2" x 6" construction. 56' x 88' Machine Shed, MWPS-74149 Building has large paved repair area and uses 6" x 6" poles, 2" x 4", and 2" x 6" construction. 48' Solar Machine Shed and Shop, MWPS-81901 Design uses attic heat absorption system and underfloor rock for temperature control. Construction is 6" x 6" post frame with concrete floor overlaying rock.