| USDA
Business and
Industry
(B&I)
Loan Program |
| Loan
Size Range: |
Up
to
$5,000,000 |
| Eligible
Area: |
B
& I
guaranteed
loans target
creation or
retention of
jobs in less
populated
rural areas.
The project
being
financed
must be
located in a
rural area;
it is not
necessary
for the
business to
be
headquartered
in a rural
area.
Cities less
than 50,000
people. |
| Eligible
Borrower
Group: |
Operating
businesses
Nonprofit
organizations
Real estate
development
&
investment
businesses
-
Owner-occupied
operating
companies
- Commercial
lease
properties
- Community
facilities
|
| Eligible
Businesses: |
-
Manufacturing
-
Business
Services
-
Recreation
&
Tourism
-
Retail
-
Hospitality
|
-
Wholesale
&
Distribution
-
Healthcare,
includes
Home
Health
&
Assisted
Living
-
New
Business
Ventures
|
|
| Ineligible
Businesses: |
-
Golf courses
- Businesses
with more
than 10% of
gross
revenue from
legalized
gambling
- Lending or
investment
institutions
- Churches
and
charitable
organizations,
Insurance
companies |
| Impact
on Jobs: |
-
Creation or
retention of
jobs
- Preference
for business
start-ups or
existing
business
plant
construction,
expansion,
or
relocation
- Special
emphasis on
rural
communities
| |
| Eligible
Use of
Proceeds: |
Real
estate
acquisition/expansion
Purchase of
business
Machinery
and
Equipment
Furniture
and Fixtures
Working
capital
Accounts
receivable
and
Inventory
Refinance
existing
loans,
leases, or
other debt
Loan fees,
professional
services,
and
feasibility
study costs
| |
| Loan
Repayment
Terms: |
| Real
estate: |
30
years
| |
| Equipment: |
15
years
| |
| Working
Capital: |
7
years
| |
| Structure: |
Monthly
payments
without
call
provisions,
no
balloons
| |
|
| Interest
Rate: |
Variable
over WSJ
prime rate,
adjusted
quarterly
| |
| Required
Borrower
Equity: |
Minimum
tangible
balance
sheet equity
of:
- 10% for
existing
business
- 20% for
new business
| |
|
We encourage
you to apply
online for a
quick
pre-qualification
through our Get
A Loan
page.
|
|
Go
back to the Products
page. |
