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Emergency Disaster Relief Loan Program

If a current disaster relief program is instated by the Governor, a banner will be posted on the main webpage.

The Utah Conservation Commission (UCC) has recently approved an Emergency Disaster Loan Program.  The purpose of the program is to assist agricultural producers by providing loan funds to help them address extraordinary circumstances related to drought that have resulted in production losses between Governor Cox’s declaration of a drought disaster on May 15, 2021 and October 1, 2022.  The timeframe may be extended pending UCC approval.  These funds are only available for agricultural producers to address drought related losses and cannot be used for any value-added projects. 

Eligible Losses: 

    • Crop producers may seek reimbursement for crop loss (including for orchard and row crops) if they can document a 50% loss since the declaration of drought disaster compared to their average  production over the prior three years.
    • Livestock producers may seek reimbursement for: death loss of breeding stock, the cost of replacement of breeding stock sold due to drought, and the cost of feed purchased. 
    • Loan funds may be used to cover drought related losses only. 
    • An addendum to the Agriculture Resource Development Loan (ARDL) Policies and Procedures handbook has been adopted and will govern this program. 
    • The ARDL Policies approved 1/17/2019 will not be used to determine eligibility.  Two examples of projects that cannot be funded with disaster loan funds are water pipelines or a hay barn.

Loan Information: 

    • Unsecured 7 year fully amortized loans. 
    • 0% interest for the first 2 years, 2.75% thereafter. 
    • Initial payment to be made in 2023. 
    • Loan maximum is $100,000 per entity. 
    • To be eligible, the agriculture producer must have an Adjusted Gross Income (AGI) of less than $250,000, as documented on their most recent tax return.
    • All disbursements must be completed within six months of loan closing or before December 31, 2022 unless the program is extended by the UCC.
    • A 12% late fee may be assessed on past due principal balance.

Documents Required for Loan Application:

    • Complete and signed application 
    • 2 years of complete (personal and business) tax returns 
    • Credit will be pulled by UDAF from a credit agency 
    • Entity Documents if applying under a business 
*Credit will not be used to make determination of loan approval but will be included in each loan file as historical collection data to be used in the event of an audit.

Application Process 

    • Any incomplete application will be placed at the bottom of rotation. 
    • The application date is considered the date of COMPLETE application, not the date of the original submission. 
    • Once all documents are received, the application will be processed for eligibility.
    • Applications will be approved on a first complete, first processed basis for funding. 
    • All signatures will be completed through DocuSign. 

Potential Reasons for Denial of an Application: 

    • Incomplete application. 
    • Lack of qualifying losses. 
    • Tax returns show that the producer has over maximum AGI. 
    • Program funds are exhausted. 
    • The producer applied outside of the application window.

How to Apply:

    • To view and download the Emergency Disaster Loan Application, click here.
    • Email completed applications or any questions you have to [email protected].
    • To view the policies of this loan program, click here.
    • For additional information on applying for this loan, contact your local Resource Coordinator.  To view full list of UDAF’s Resource Coordinators, click here.
All denied applicants will receive a written notice that includes the reason for the denial.