Sheep & Goat Industry Loans Available at 4% Interest

September 5, 2003

Colorado Springs, CO (September 5, 2003)- The National Livestock Producers Association (NLPA) Sheep & Goat Fund Committee is pleased to announce that the interest rate available to projects to improve the sheep and goat industries has been lowered to 4 percent.

"We are trying to stimulate movement and encourage new applicants," Richard Drake, Chairman of the NLPA Sheep & Goat Fund Committee, said. "We want the industry to know that we are here to help."

Currently, the NLPA Sheep & Goat Fund Committee has extended 32 loans to 26 entities in 17 states and has received 53 applications. More than $6.9 million has been loaned to sheep and goat businesses, leaving about $7 million still available for new applications.

"We hope to get all of the money loaned soon so it can help to stabilize and build the industry," Drake said. "The Fund has already helped the industry by establishing loans that have reasonable risk but may otherwise not be considered by most banks. The Sheep & Goat Fund can demonstrate to the national banking community that there is a part of the sheep and goat industry that will work with them, which may help create a more favorable relationship with banks."

According to Drake, who feeds sheep and cattle in Colorado and Nebraska, the Fund is being used to benefit all sectors of the sheep and goat industries, with the sole exception of production loans, which are outside the scope of the loan program.

"Currently loans have been made in many areas, including genetic development, sheep and goat dairies, lamb and goat meat processing, and fiber processing," Drake said. "The Sheep & Goat Fund Committee will consider any worthwhile project that will benefit our industry."

In 1999, an agreement was signed between the National Sheep Industry Improvement Center (Sheep Center) and NLPA that enables the Sheep Center funds to be used in the sheep and goat industries. The agreement allowed NLPA to establish a revolving fund that is used exclusively for loans to the sheep and goat industries with the following goals:

o To make capital available for enhancing business methods and services.
o To improve marketing efficiency and product quality.
o To promote coordination and cooperation within the industry.
o To create opportunities for adding value to sheep and goat products.

According to the terms of the agreement the Sheep and Goat Fund Committee, which consists of members of NLPA and representatives of the sheep and goat industries, is responsible for the oversight of Fund. The Committee regularly reviews applications and is only allowed to consider loans up to $1 million that are submitted by eligible entities (sole proprietors are not eligible as written into the legislation that established the Sheep Center).

For more information or an application please contact the National Livestock Producers Association at (800) 237-7193. More information and the application are also available at www.nlpa.org.