IL HB3905

Authorizes the Illinois Finance Authority to issue state loan guarantees to lenders for loans to small family farm operations, community-supported agriculture operators, and beginning farmers.

Limits state guarantees to $35,000 per qualified applicant with repayment periods not exceeding 7 years, except annual operating loans must be repaid within 12 months after agricultural commodities are sold.

Establishes qualified applicant requirements: Illinois resident at least 18 years old, principal farm operator, minimum net worth of $10,000, and debt-to-asset ratio of at least 40%.

Permits loan use for start-up expenses, annual operating costs (seed, fertilizer, utilities), equipment purchases, livestock, farm improvements, hoop houses, irrigation, and delivery vehicles.

Requires lenders to charge interest rates below market rate, allows conversion to fixed rate by mutual agreement, and mandates annual review and renewal of guarantees by both lender and Authority.