Fruit and Tree Nut Combination
111336
SBA Loans for Fruit and Tree Nut Combination Farms: Financing Growth in Specialty Agriculture
Introduction
Fruit and tree nut combination farms produce diverse crops that supply fresh fruit and nuts to markets, processors, and consumers. Classified under NAICS 111336 – Fruit and Tree Nut Combination Farming, this sector includes farms that grow multiple crops such as apples, pears, peaches, walnuts, pecans, and almonds on the same acreage. While diversified farming can reduce risk and increase revenue potential, these operations face financial challenges including equipment costs, land investment, seasonal labor, and unpredictable weather conditions.
This is where SBA Loans for Fruit and Nut Farmers provide vital financial support. Backed by the U.S. Small Business Administration, SBA loans offer affordable financing with longer repayment terms, lower down payments, and government-backed guarantees. These loans help combination farms purchase equipment, cover seasonal payroll, invest in irrigation systems, and expand orchards to increase productivity.
In this article, we’ll explore NAICS 111336, the financial challenges fruit and nut farmers face, how SBA loans provide solutions, and answers to frequently asked questions about financing these operations.
Industry Overview: NAICS 111336
Fruit and Tree Nut Combination Farming (NAICS 111336) includes farms growing more than one type of fruit or nut crop. Common examples include:
- Apple and walnut orchards
- Pear and pecan groves
- Mixed stone fruit and almond farms
- Small family farms producing a mix of fruits and nuts for local markets
Diversified production provides revenue stability, but managing multiple crops increases complexity in harvesting, marketing, and storage. These farms often supply both fresh markets and processing industries, from juice and cider to nut oils and packaged snacks.
Common Pain Points in Fruit and Nut Farm Financing
From Reddit’s r/farming, r/agriculture, and Quora discussions, combination farm owners often highlight these financial challenges:
- High Startup & Expansion Costs – Trees take years to mature, requiring patience and upfront investment.
- Equipment Needs – Harvesting machines, sprayers, tractors, and storage facilities are costly.
- Labor Costs – Seasonal labor is essential for planting, pruning, and harvesting multiple crops.
- Weather Risks – Frosts, droughts, pests, and storms can reduce yields across multiple crops at once.
- Cash Flow Gaps – Farmers wait for crops to mature and seasonal harvests to bring income, creating liquidity issues.
How SBA Loans Help Fruit and Nut Farmers
SBA loans provide flexible, affordable capital that helps farms manage cash flow, purchase equipment, and expand sustainably.
SBA 7(a) Loan
- Best for: Working capital, payroll, fertilizer, or refinancing debt.
- Loan size: Up to $5 million.
- Why it helps: Covers seasonal operating costs, inputs, and marketing efforts.
SBA 504 Loan
- Best for: Land, orchards, and storage facilities.
- Loan size: Up to $5.5 million.
- Why it helps: Perfect for purchasing farmland, cold storage, processing facilities, or irrigation systems.
SBA Microloans
- Best for: Startups and small family farms.
- Loan size: Up to $50,000.
- Why it helps: Useful for buying seeds, saplings, small equipment, or certifications.
SBA Disaster Loans
- Best for: Recovery from natural disasters like storms, frost, or drought.
- Loan size: Up to $2 million.
- Why it helps: Provides working capital to repair facilities, replace damaged trees, or cover lost revenue.
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit farm with strong personal credit (typically 650+).
- Prepare Financial Documents – Include tax returns, P&L statements, crop production records, and land ownership/lease agreements.
- Find an SBA-Approved Lender – Some lenders specialize in agricultural financing.
- Submit Application – Provide a detailed business plan with crop yields, orchard acreage, and revenue projections.
- Underwriting & Approval – SBA guarantees reduce lender risk. Processing usually takes 30–90 days.
FAQ: SBA Loans for Fruit and Tree Nut Farmers
Why do banks often deny loans to orchards and nut farms?
Banks see tree farming as risky because of long maturity timelines, weather risks, and seasonal revenue. SBA guarantees reduce lender risk, improving approval chances.
Can SBA loans cover irrigation systems and cold storage?
Yes. SBA 7(a) and 504 loans can fund irrigation systems, storage facilities, and orchard infrastructure.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% with conventional loans.
Are startup farms eligible?
Yes. Startup farms can qualify with agricultural experience, land access, and a strong business plan.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment: Up to 10 years
- Land/real estate: Up to 25 years
Can SBA loans support diversification into new crops?
Absolutely. Many farmers use SBA loans to expand into high-demand crops like almonds, pecans, or specialty fruits.
Final Thoughts
The Fruit and Tree Nut Combination Farming industry offers revenue diversity but requires careful investment and long-term planning. SBA Loans for Fruit and Nut Farmers provide affordable financing to purchase land, expand orchards, and stabilize operations during seasonal cycles.
Whether you’re managing a family-run farm or scaling into commercial production, SBA financing can provide the capital to grow. Connect with an SBA-approved lender today and explore funding opportunities for your farming business.
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