USDA Commercial Loans
The USDA Business and Industry (B&I) Guaranteed Loan Program helps rural businesses to expand and improve by providing financial backing. This program provides guarantees by US Department of Agriculture on the loan made by the bank. Loan proceeds may be used to create jobs, improve environment and economic conditions, purchase machinery and equipment, buildings and real estate, and certain types of debt refinancing.
Type of Loans
B&I-Business & Industry: Loan Amounts. $2 Million - $25 Million. USDA’s Business & Industry (B&I) Loan Program benefits business owners and local communities through government-guaranteed loans specifically earmarked for businesses in rural locations.The business owners we serve are often surprised to hear that the USDA supports more than agriculture alone. In fact, the USDA Business & Industry loan program has nothing to do with agriculture at all. The USDA B&I Loan Program empowers entrepreneurs and entities of all sizes with loans of up to $25 million, so long as they operate in communities of 50,000 or fewer.
REFA-Rural Energy for America: USDA's Rural Energy for America Program (REAP) benefits business owners and brokers alike through government-guaranteed commercial loans specifically earmarked for renewable energy projects across rural America. Small business owners know all too well, energy is expensive. But replacing or improving energy-inefficient equipment is expensive, too. That’s why the USDA enacted the Rural Energy for America Program (REAP). The program provides government-guaranteed loans and grants to agricultural producers and rural small businesses to upgrade, replace, or construct energy-efficient systems. Powering the instruments of industry just got easier.
CF-Community Facility: Loans for Essential Services in Rural Areas. Loan Amounts Starting at $2 Million. Populations of 50,000 or Fewer. USDA’s Community Facilities (CF) Loan Program, which exists to deploy capital into nonprofit organizations and public bodies that provide essential services to rural communities through government-guaranteed loans. He also explains the various uses of funds available for these essential facilities (education, utilities, healthcare facilities, public safety, etc.). Unlike other loan programs from the USDA, the Community Facilities Loan is not designed for commercial undertakings, but rather, to create facilities that provide essential services to rural communities. Such services can include healthcare, childcare, education, public gatherings, utilities, and food distribution, among others. If a community is in need of a certain facility, chances are a CF loan could fund its construction or improvement.
Generally, these loans are available to anyone who is United States (U.S.) citizen or reside in the U.S. after being legally admitted for permanent residence and meets minimum credit guidelines and local area income requirements.
Borrower must also contribute towards betterment of the rural community by providing employment, improving economic and environmental climate, or Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems.
Funds can be used in any area contained in the USDA regulations. For example, funds can be used for business and industrial acquisitions to prevent the loss of employment opportunities, or provide expanded job opportunities. Borrowers can use the funds to purchase land, buildings, equipment, leasehold improvements, machinery, supplies, or business inventory.
Call us at 833-227-4790 or Click the button below to see if you qualify for a USDA Loan.