Loan Programs

Eligible Areas:

  • Projects financed under the B&I program must be located in the United States or its possessions/territories and must be in a rural area (defined as having a population of less than 50,000)

Eligible Borrowers:

  • Any legal entity including individuals, public and private organizations and federally recognized Indian tribal groups
  • There is no size restriction on the business

Use of Proceeds:

  • B&I loans may involve acquisitions, construction, conversion, repair, modernization or debt refinance
  • Loan proceeds can be used for real estate acquisition and/or improvements, machinery, equipment, furniture, fixtures and working capital
  • Closing costs and guarantee fees are also eligible

Borrower Equity Requirements:

  • For existing businesses: a minimum of 10% tangible balance sheet equity is required at the time of issuance of the Loan Note Guarantee
  • For start-up businesses: a minimum of 20% tangible balance sheet equity is required at the time of issuance of the Loan Note Guarantee
  • Equity is determined in accordance with Generally Accepted Accounting Principles (GAAP)

Terms:

  • All B&I loans are fully amortized with no balloons or call dates
  • Maximum repayment terms are up to 30 years for real estate and improvements, up to 15 years (or useful life) for machinery, equipment, furniture and fixtures and up to 7 years for working capital
  • Rates are based on a spread over the Prime Lending Rate (rates vary depending on the specific strengths of the transaction)
  • A one-time Guarantee Fee of 3% if the guaranteed principal amount is due to USDA at loan closing; other customary fees also apply

Pre-Screen:

  • Pre-screen service available within 24 hours with no charge or obligation by providing limited information