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The percentage of guarantee for a guaranteed CL to a non-beginning, non-SDA farmer is:

A. 70%
B. 75%
C. 80%
D. 85%

1 Answer

2 votes

Final answer:

The correct answer is C. 80%. The lender is willing to guarantee 80% of the loan amount for non-beginning, non-SDA farmers.

Step-by-step explanation:

The percentage of guarantee for a guaranteed Conservation Loan (CL) to a non-beginning, non-Socially Disadvantaged Applicant (SDA) farmer is not directly provided in the given choices, but it's important to be familiar with U.S. Department of Agriculture (USDA) loan programs which might offer such guarantees. The correct answer is C. 80%. In the given options, the percentage of guarantee for a guaranteed CL (Commodity Loan) to a non-beginning, non-SDA (Socially Disadvantaged Farmer) is 80%. This means that the lender is willing to guarantee 80% of the loan amount for such farmers.

For example, if the loan amount is $10,000, the lender will guarantee $8,000 (80% of $10,000) to the farmer. The remaining $2,000 (20%) would be the farmer's responsibility.

Therefore, option C - 80% is the correct answer.

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