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Business and Industry Guaranteed Loans

Sponsors
U.S. Department of Agriculture, USDA Rural Development
Deadlines
Applications accepted on an ongoing basis
Contact

Contact the appropriate USDA Rural Development state office.

Purpose

The purpose of the Business and Industry Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.

The Loan Program will bolster the existing private credit structure through the guarantee of quality loans.

Funds may be used for:

  • Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities
  • Business conversion, enlargement, repair, modernization, or development
  • Purchase and development of land, easements, rights-of-way, buildings, or facilities
  • Purchase of equipment, leasehold improvements, machinery, supplies, or inventory
  • Debt refinancing when new jobs will be created and other conditions are met

Eligibility

Borrowers may be:

  • For-profit businesses of which the majority ownership (51%) is held by U.S. Citizens or permanent residents
  • Nonprofit organizations and cooperatives
  • Federally recognized tribes
  • Public bodies
  • Individuals

The program funds projects within eligible areas, which include:

  • Any area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town
  • The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area.
  • The lender may be located anywhere.
  • Projects may be funded in rural and urban areas under the Local and Regional Food System Initiative.
Geographic coverage
Nationwide
Amount of funding

Maximum amounts of loan guarantees:

  • 80% for loans of $5 million or less
  • 70% for loans between $5 and $10 million
  • 60% for loans exceeding $10 million, up to $25 million maximum

Terms, fees, and underwriting requirements may be found on the program website.

Application process

Application guidance, forms, resources, engineering requirements, environmental policies and procedures, and interest rates may be found on the program website.

Lenders interested in participating in this program should contact the USDA Rural Development Business Programs Director in the state office where the project is located

Interested borrowers should inquire about the program with their lender.

Tagged as
Capital funding · Community and economic development



For complete information about funding programs, including your application status, please contact funders directly. Summaries are provided for your convenience only. RHIhub does not take part in application processes or monitor application status.