USDA Commercial Loans
The USDA Business and Industry (B&I) Guaranteed Loan Program helps rural businesses expand and improve. It provides guarantees by US Department of Agriculture up to 90 percent of loanw made by banks. Loan proceeds may be used to create jobs, improve the environment and economic conditions, purchase machinery, equipment, buildings, real estate and certain types of debt refinancing.
USDA loans are for United States citizens or those living in the U.S.A. after being legally admitted for permanent residence and who meet minimum credit guidelines and local area income requirements.
Borrowers must contribute towards the betterment of the rural community by providing employment, improving the economic and environmental climate or by reducing reliance on nonrenewable energy resources by encouraging development and construction of solar energy systems and other renewable energy systems.
The total amount of Agency loans to an individual borrower is $10 million. Under special circumstances loans can go up to $40 million for rural cooperative organizations that process value-added agricultural commodities.
Usage: Funds can be used for business and industrial acquisitions to prevent the loss of employment opportunities or to provide expanded job opportunities. Borrowers can use the funds to purchase land, buildings, equipment, leasehold improvements, machinery, supplies, or business inventory.