that were originally brought in to work in concert with the Banks, by providing farmers and businesses the funds needed to be able to get the loan from the Bank, taking a second position to the Bank. Worked well and then our Farm Credit government institution decided to go in competition with the Banks instead, because of course, there was so much money to be made. I do not agree with that at all, the rates now are competitive with Banks and their lending criteria is the same. Now where are the farmers to go when they do not quite qualify? Government guaranteed loans for small business and farmers are still around but the requirements of the government for endless paperwork and receipts puts the Banker off from lending under their criteria and rates are often higher. There is definitely room for the government to provide the extra funds for businesses and farms to bridge them to qualify for loans but as far as I am concerned the minute they decided to go into competition, they defeated the purpose of their original mandate. Tread carefully.
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