An agency of the federal Department of Agriculture and sometimes described as "the other FHA." FmHA assists farmers, rural residents and rural communities by guaranteeing loans made by private lenders and by originating and servicing FmHA loans. This helps borrowers to purchase farms, homes, or businesses. Loans may be used to expand farms already owned, improve buildings, develop land, purchase farm equipment, clear trees, set up drainage systems, etc. Family-sized farms are eligible for these loans whether they are individually owned, cooperatives or corporations. Loans to communities help to create pure water, efficient waste disposal systems, etc. Business loans help to provide off-farm employment. Banks and other lenders provide FmHA guaranteed loans. In the case of default, FmHA compensates the lender for up to 90% of the loss.