Delaware Agricultural Financing Program (DAFP)

The Delaware Department of Agriculture has partnered with the Delaware Division of Small Business to increase the viability of Delaware’s agricultural industry by broadening lending opportunities across the agricultural sector.

How DAFP Works

Equipment loans will be available for supporting activities, including production, processing, packaging, aggregation, and distribution for small and large operations. The Delaware Economic Development Authority (DEDA), through the state’s Division of Small Business, will provide loans of $25,000 to $250,000 with a maximum loan amount of 50% of a project’s total cost. Applicants must demonstrate eligibility from a private lender for the balance of project costs. Final closing will be contingent on the approval of all participating lenders. All loans will have a term of up to seven (7) years, with interest-only payments due in the first year, followed by full amortization. Interest rates will be fixed at 3.35% for first-time farmers and aquaculture projects and 4.25% for all other projects.
 

Eligibility

Delaware farmers, producers, and food processors actively engaged in crop, livestock, aquaculture, and/or food production in the State of Delaware. Proof of farm or food business ownership or an IRS Schedule F tax form from the previous year can be provided. All work must be performed by experienced and qualified contractors licensed by the State of Delaware whose primary business location is in Delaware. Project financing is limited to one project per business annually, defined as one calendar year from the time of the closing date of its most recent loan.
 

How to Apply

Those interested in applying for a loan through the Delaware Agricultural Financing Program should submit an application to DAFP@delaware.gov.

Delaware Agricultural Financing Program (DAFP) Application

Additional Information

Delaware Agricultural Financing Fact Sheet (DAFP)