The Highly Fractionated Indian Land Loan Program (HFIL), administered by the Farm Service Agency (FSA), is designed to help individuals and entities consolidate ownership of highly fractionated Indian lands.
Fractionated land ownership occurs when multiple heirs inherit undivided interests in a parcel of land, leading to numerous co-owners. This program provides financial assistance to purchase these fractionated interests, thereby reducing fragmentation and promoting more effective land management, agricultural productivity, and economic development within tribal areas
Eligible applicants include individual Native American landowners, tribal members, and tribal entities aiming to purchase fractionated interests in trust or restricted lands. Applicants must demonstrate the ability to repay the loan and provide a comprehensive plan for the use of the land to promote agricultural production or other economic development activities.
To apply for the Highly Fractionated Indian Land Loan Program, applicants must submit a loan application to their local FSA office. The application process includes providing documentation of the fractionated interests to be purchased, a detailed plan for the use of the land, and evidence of the applicant's ability to repay the loan. Detailed enrollment instructions and deadlines are available through the local FSA office.
Program Features
- Loan Purposes: Funds can be used to purchase fractional interests in trust or restricted lands to consolidate ownership and enhance land usability and productivity.
- Loan Amounts: Up to $500,000 per applicant.
- Interest Rates: Competitive interest rates set by the FSA, generally lower than conventional loans.
- Repayment Terms: Up to 30 years, depending on the applicant's financial situation and the loan purpose.