What is the percentage guarantee on a guaranteed line of credit for a non-beginning, non-SDA farmer?

For a guaranteed line of credit extended to a non-beginning farmer who does not qualify as a socially disadvantaged applicant (SDA), the percentage guarantee is set at 80%. This helps mitigate risk for lenders by providing assurance that a certain percentage of the loan will be reimbursed in the event of default. The 80% guarantee reflects government policy aimed at supporting farmers who may face challenges in securing credit due to perceived risks.

It's important to understand that guarantees are structured differently for various farmer classifications, such as beginning farmers or those from socially disadvantaged backgrounds, which is why this particular guarantee percentage is specific to the category mentioned in the question.