Business and Industry Guaranteed Loans
Contact the appropriate USDA Rural Development state office.
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.
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 develop 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
Borrowers may be:
- For-profit businesses
- Nonprofit organizations and cooperatives
- Federally recognized tribes
- Public bodies
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.
Maximum amounts of loan guarantees:
- 80% for loans of $5,000,000 or less
- 70% for loans between $5,000,000 - $10,000,000
- 60% for loans exceeding $10,000,000, up to a maximum of $25,000,000
Terms, fees, and underwriting requirements may be found on the program website.
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 or contact the state office to request information on local lenders.
According to a rule published in the Federal Register, this program may guarantee loans in response to the COVID-19 pandemic. The rule is effective May 22, 2020 and applications will be accepted through June 22, 2020 or until funds are expended.
According to a Federal Register announcement, lenders may offer 180-day loan payment deferrals without prior agency approval until September 30, 2020.
Rural lenders and program participants
May 27, 2020
3:30 p.m. Eastern
Rural lenders, stakeholders, and the general
June 3, 2020
2:00 p.m. Eastern
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.