Maine Organic Farmers and Gardeners Association
Organic Farmer Loan Fund

Programs \ Organic Farmer Loan Fund

January 2019

The Maine Organic Farmers and Gardeners Association is accepting applications for the Spring 2019 funding cycle. This fund is intended particularly to help organic farmers working on establishing a credit history for their farms.

Eligibility. Loans are available to:

MOFGA certified organic farmers and farmers exempt from certification under the NOP rules*;

farmers interested in making the transition to organic management;

current participants in, or graduates of, MOFGA’s Journeyperson Program

Permitted Uses, Amounts, Rates & Terms. The loan fund will provide loans to small and medium-sized businesses seeking to expand or enhance their farm or processing operations through business planning, marketing, aggregation, or other business enhancement. Funds in this program may also be used for working capital or equipment purchases. Loans from the Organic Farmer Loan Fund are in the range of $2,000 to $20,000. Loan program interest rates will be determined by Bangor Savings Bank at the time of loan application.

Application Review & Loan Closing. Applications will be reviewed by an advisory board, which makes the final decision on the loans. If there are questions after initial review, there may be follow-up inquiries to the applicant or coordination of an in-person interview. Bangor Savings Bank will be doing the administrative portion of the program, and your final loan agreement will be guaranteed by MOFGA and held with Bangor Savings Bank. Prior to closing, Bangor Savings Bank will submit a letter of commitment that will detail the closing requirements. In general, all or some of the following documents must be executed: a promissory note for unsecured loans, a security agreement for secured loans and other security instruments. MOFGA, as well as the farmer, is at risk in this program. The advisory committee will be reviewing applications with an eye to the potential success of the applicant.

Reporting. MOFGA reserves the right to require annual financial reports. Quarterly cash flow statements may be requested.

Application & Timeline. Applications must be postmarked by Friday, March 29, 2019. Funds for approved loans should be available by the last week of April. Please use the checklist below to submit a complete application. If you need help completing a loan application, please contact the MOFGA office at (207) 568-4142, or

* 7 CFR Part 205 National Organic Program Final Rule Section 205.101 (a)(1) (see page 398, part 205.101: "Exemptions and exclusions from certification.")

MOFGA Organic Farmer Loan Fund Application Checklist

Download the application packet (pdf, 625k)

  • Bangor Savings Bank Business Loan Application
  • Bangor Savings Bank Customer Identification Policy (CIP) Forms (2)
  • Questionnaire for Business Entity
  • Bangor Savings Bank Personal Financial Statement Form
  • Profit and Loss form
  • A projected budget for the upcoming production season of sales and categorized expenses for your business including a breakdown of expenses for the entire project being financed, anticipated additional sources of financing and the total project cost
  • Trade Reference Sheet. If unavailable, please send three letters of reference.
  • Copies of the last two years' federal tax forms

Applications must be postmarked by Friday, March 29, 2019.

If you need help completing a loan application, please contact the MOFGA office at (207) 568-4142, or email