Other Vegetable (except Potato) and Melon Farming
111219
Northeast Bank (ME)
Bank of Clarke (VA)
Banco Popular de Puerto Rico (PR)
SBA Loans for Other Vegetable (except Potato) and Melon Farming: Financing Growth in Specialty Crop Agriculture
Introduction
Vegetable and melon farms outside of potato production form a diverse and essential segment of U.S. agriculture. Classified under NAICS 111219 – Other Vegetable (except Potato) and Melon Farming, this industry includes farms producing crops such as lettuce, spinach, broccoli, cucumbers, tomatoes, cantaloupes, watermelons, and squash. While demand for fresh vegetables and melons continues to rise with consumer interest in healthy diets and local produce, farmers face financial hurdles such as seasonal risks, weather variability, equipment costs, and distribution challenges.
This is where SBA Loans for Vegetable and Melon Farms can provide vital financial support. Backed by the U.S. Small Business Administration, SBA loans offer longer repayment terms, lower down payments, and government-backed guarantees. These loans help farmers purchase equipment, invest in irrigation systems, hire seasonal workers, and stabilize cash flow while navigating unpredictable agricultural markets.
In this article, we’ll explore NAICS 111219, the financial challenges farmers face, how SBA loans provide solutions, and answers to frequently asked questions from agricultural entrepreneurs.
Industry Overview: NAICS 111219
Other Vegetable (except Potato) and Melon Farming (NAICS 111219) includes farms that grow:
- Lettuce, spinach, kale, and leafy greens
- Tomatoes, cucumbers, peppers, and zucchini
- Broccoli, cauliflower, and other vegetables
- Cantaloupes, watermelons, and specialty melons
- Seasonal crops for local and wholesale markets
This industry is labor-intensive and highly dependent on climate, requiring investment in land, irrigation, and harvesting equipment.
Common Pain Points in Vegetable and Melon Farming Financing
From Reddit’s r/farming, r/agriculture, and Quora discussions, farmers often highlight these challenges:
- Weather Risks – Droughts, floods, and storms can devastate crops.
- Labor Shortages – Finding and retaining seasonal workers is costly and competitive.
- Equipment Costs – Tractors, irrigation systems, and harvesting machines require major investment.
- Perishability – Fresh produce has short shelf life, requiring efficient distribution.
- Market Volatility – Prices fluctuate with supply, demand, and competition from imports.
How SBA Loans Help Vegetable and Melon Farmers
SBA financing provides affordable, flexible capital that helps farmers reduce risks, improve productivity, and expand market reach.
SBA 7(a) Loan
- Best for: Working capital, payroll, seeds, or refinancing debt
- Loan size: Up to $5 million
- Why it helps: Provides liquidity for seasonal expenses and operating costs
SBA 504 Loan
- Best for: Land, irrigation, storage facilities, and equipment
- Loan size: Up to $5.5 million
- Why it helps: Ideal for farm infrastructure such as greenhouses, irrigation systems, and tractors
SBA Microloans
- Best for: Small or startup farms
- Loan size: Up to $50,000
- Why it helps: Useful for seeds, fertilizer, small tools, or local marketing
SBA Disaster Loans
- Best for: Farmers impacted by droughts, floods, or hurricanes
- Loan size: Up to $2 million
- Why it helps: Provides recovery funds for lost crops, damaged equipment, or soil rehabilitation
Step-by-Step Guide to Getting an SBA Loan
- Check Eligibility – Must be a U.S.-based, for-profit farm with good personal credit (typically 650+)
- Prepare Financial Documents – Include tax returns, crop yield reports, supplier contracts, and equipment quotes
- Find an SBA-Approved Lender – Some lenders specialize in agricultural and rural financing
- Submit Application – Provide a business plan highlighting crop selection, yield projections, and distribution strategy
- Underwriting & Approval – SBA guarantees reduce lender risk. Approval generally takes 30–90 days
FAQ: SBA Loans for Vegetable and Melon Farms
Why do banks often deny loans to vegetable and melon farmers?
Banks may view farming businesses as risky due to weather, perishability, and market fluctuations. SBA guarantees reduce this risk and improve approval chances.
Can SBA loans finance irrigation systems, storage, and harvesting equipment?
Yes. SBA 7(a) and 504 loans can fund irrigation, tractors, cold storage, and packaging facilities.
What down payment is required?
SBA loans typically require 10–20% down, compared to 25–30% for conventional agricultural loans.
Are startup farms eligible?
Yes. New farms with land access, contracts, or co-op partnerships may qualify for SBA microloans or 7(a) financing.
What repayment terms are available?
- Working capital: Up to 7 years
- Equipment/facilities: Up to 10 years
- Real estate/land: Up to 25 years
Can SBA loans support organic or specialty crop expansion?
Absolutely. Many farmers use SBA financing to diversify into organic production, specialty melons, or value-added packaging.
Final Thoughts
The Other Vegetable (except Potato) and Melon Farming industry is essential for supplying fresh, healthy produce but faces financial hurdles tied to weather, perishability, and labor. SBA Loans for Farmers provide affordable, flexible financing to stabilize operations, invest in infrastructure, and expand production capacity.
Whether you operate a small family farm or a large commercial growing operation, SBA financing can provide the resources you need. Connect with an SBA-approved lender today and explore your funding options under NAICS 111219.
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#Preferred Lenders Program
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#Existing or more than 2 years old
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#Change of Ownership
#New Business or 2 years or less
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#Variable Rates
#Fixed Rates
#Asset Base Working Capital Line (CAPLine)
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#Seasonal Line of Credit (CAPLine)
#Builders Line of Credit (CAPLine)