USDA Business and Industry Loan Guarantee Program
- Must be located in an area defined as “rural” by the USDA, areas with population centers of 50,000 or less, to be eligible for this program.
- Most types of business qualify—manufacturing, wholesale, retail, , service—new or existing.
- Proprietorships, partnerships, corporations, LLC’s, non-profits, federally recognized Indian tribal groups.
- Purchase and development of land, easements, buildings or facilities.
- Purchase, expansion or start up of manufacturing or commercial businesses.
- Purchase of equipment, leasehold improvements, machinery, supplies, or inventory.
- Loan fees and costs (including BVFR’s advisory fee and the B&I guarantee fee), professional services, and feasibility study costs.
- 80% (maximum) guarantee on loans up to $5MM;
- 70% (maximum) guarantee on loans from $5MM-$10MM;
- 60% (maximum) guarantee on loans from $10MM-$25MM.
- Below market (generally 100 to 200 basis points) customary commercial interest rate – negotiated by lender and business. Fixed or variable (but not more often than quarterly) tied to a published base rate.
- Working capital – 7 years maximum.
- Equipment – 15 years maximum (or useful life).
- Real Estate – 30 years maximum.
- 10% tangible equity to tangible assets for existing businesses
- 20% tangible equity for start-ups.
Eligible Applicants
Eligible loan purposes:
Percentage of Guarantee:
Interest Rate:
Terms:
Equity: