USDA Commercial Loans Overview
The USDA Business and Industry (B&I) Guaranteed Loan Program offers financial support for rural businesses, aiming to foster growth and improvement. The program, backed by the US Department of Agriculture, guarantees up to 90% of a loan issued by a bank, assisting in job creation, enhancing economic and environmental conditions, funding machinery and equipment purchases, building and real estate acquisition, and certain debt refinancing activities.
Eligibility Criteria
Eligibility extends to U.S. citizens or legal permanent residents who meet the minimum credit standards and local income requirements. Successful applicants should contribute to their rural community's welfare by boosting employment, advancing the economic and environmental landscape, or supporting renewable energy initiatives, including solar and other renewable energy systems development.
Loan Details
Maximum Loan Amounts: Typically, the maximum loan amount to a single borrower is $10 million. However, under special conditions, this cap can increase to $25 million, or even $40 million for rural cooperative organizations focused on improving and processing value-added agricultural commodities.
Use of Funds
Uses for Loan Proceeds: Loan proceeds are versatile, supporting a range of activities as outlined in the USDA regulations. These include preventing job loss, enhancing job creation, and funding the acquisition of land, buildings, equipment, leasehold improvements, machinery, supplies, or inventory.
For more information or to assess your eligibility for a USDA Commercial Loan, contact us at 916-671-2584 or click below for a consultation.
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