USDA BUSINESS & INDUSTRY LOAN PROGRAM

BUSINESS & INDUSTRY GUARANTEED LOAN PROGRAM

The USDA Business and Industry (B&I) Guaranteed Loan Program is designed to assist rural businesses in communities of 50,000 or less obtain credit for most any legal business purpose. A borrower may be a corporation, partnership, individual, cooperative organization or other legal entity organized and operated on a profit or non profit basis. 

Loan Purpose

  • Business and Real Estate acquisitions, construction, conversion, expansion, repair, modernization or development.

  • Purchase of equipment, machinery, or inventory.

  • Start-up costs and working capital.

  • Refinancing for viable projects.

Equity Requirements

For existing businesses, a minimum of ten percent (10%) tangible balance sheet equity is required at the time of issuing the loan note guarantee. For new businesses, twenty percent (20%) tangible balance sheet equity is required. Equity is calculated in accordance with general accepted accounting principles (GAAP).

Recourse

All principals who own 20% or more of the business are required to provide a full guarantee. The guarantee of affiliated companies may be required based on the percentage of ownership of the affiliate and the borrower’s relationship with the affiliate.