Business & Industry Loan Guarantees
Link
https://www.rd.usda.gov/programs-services/business-programs/business-industry-loan-guarantees
Additional Links
Deadline
Applications accepted on an ongoing basis
Sponsor
USDA Rural Development (USDA RD)
Purpose
Expands access to business capital and opportunities to benefit rural communities' economic health by providing rural businesses with loan guarantees. Allows commercial lenders to offer affordable financing to businesses to support business operations and create or preserve employment opportunities in eligible rural areas.
Funds can be used for:
- Business conversion, expansion, repair, renovation, or development
- Buying or developing land, buildings, facilities, and related infrastructure
- Buying and installing equipment, machinery, supplies, or inventory
- Debt refinancing when it improves cash flow and creates new jobs
- Business and industrial acquisitions that help sustain business operations and establish or maintain jobs
Amount of Funding
Loans are guaranteed at 80% of the total loan amount.
Details on loan terms, collateral requirements, interest rates, fees, underwriting, and security requirements are available online.
Who Can Apply
Borrowers that qualify for the program include:
- For-profit businesses
- Nonprofits
- Cooperatives
- Federally recognized tribes
- Public bodies
- Individuals engaged or proposing to engage in a business
Additional borrowing restrictions include:
- Individual borrowers must be citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence.
- Private-entity borrowers must demonstrate that loan funds will remain in the U.S. and the facility being financed will primarily create new or save existing jobs for rural U.S. residents.
Eligible lender applicants must have the legal authority, sufficient experience, and financial strength to operate a successful lending program such as:
- Federal or state-chartered banks
- Savings and loans
- Farm credit banks with direct lending authority
- Credit unions
- Other non-regulated lending institutions approved under One RD regulation criteria
Eligible areas include:
- Rural areas outside of a city or town with a population of fewer than 50,000 people.
- 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 in the U.S.
- Projects may be funded in rural and urban areas under the Local and Regional Food System Initiative. Check eligible addresses for business programs.
Geographic Coverage
Nationwide
What This Program Funds
Buildings and Facilities • Equipment • Operating Costs and Staffing • Starting a Business
Application Process
Detailed application information for lenders can be found on the OneRD Guarantee Loan Initiative website .
Lenders interested in participating in the 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 their local USDA Rural Development state office for more information.
Contact
For program questions:
Contact the appropriate USDA Rural Development state
office.
Topics This Program Addresses
Economic Development • Infrastructure • Vocational Training, Education, and Employment