This funding record is inactive. Please see the program website or contact the program sponsor to determine if this program is currently accepting applications or will open again in the future.

Business and Industry Loan Guarantees

Link

https://www.rd.usda.gov/programs-services/business-industry-loan-guarantees

Additional Links

Fact Sheet

Deadline

Application Deadline: Sep 15, 2021

Sponsoring Organization

USDA Rural Development (USDA RD)

Purpose

Expands access to business capital and opportunities to benefit rural communities' economic health by providing rural businesses with loan guarantees. Allows commercial lenders to offer affordable financing to businesses to support business operations and create or preserve employment opportunities in eligible rural areas.

Funds can be used for:

  • Business conversion, expansion, repair, renovation, or development
  • Buying or developing land, buildings, facilities, and related infrastructure
  • Buying and installing equipment, machinery, supplies, or inventory
  • Debt refinancing when it improves cash flow and creates new jobs
  • Business and industrial acquisitions that help sustain business operations and establish or maintain jobs

Amount of Funding

Maximum loan guarantee amounts:

  • 80% for loans less than or equal to $5,000,000
  • 70% for loans between $5,000,000 and $10,000,000
  • 60% for loans exceeding $10,000,000, up to a maximum of $25,000,000

Details on loan terms, collateral requirements, interest rates, fees, underwriting, and security requirements are available online.

Who Can Apply

Borrowers that qualify for the program include:

  • For-profit businesses
  • Nonprofits
  • Cooperatives
  • Federally recognized tribes
  • Public bodies
  • Individuals engaged or proposing to engage in a business

Additional borrowing restrictions include:

  • Individual borrowers must be citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence.
  • Private-entity borrowers must demonstrate that loan funds will remain in the U.S. and the facility being financed will primarily create new or save existing jobs for rural U.S. residents.

Eligible lender applicants must have the legal authority, sufficient experience, and financial strength to operate a successful lending program such as:

  • Federal or state-chartered banks
  • Savings and loans
  • Farm credit banks with direct lending authority
  • Credit unions
  • Other non-regulated lending institutions approved under One RD regulation criteria

Eligible areas include:

  • Rural areas outside of a city or town with a population of fewer than 50,000 people.
  • The borrower's headquarters may be based within a larger city as long as the project is located in an eligible rural area.
  • The lender may be located anywhere in the U.S.
  • Projects may be funded in rural and urban areas under the Local and Regional Food System Initiative. Check eligible addresses for business programs.

Geographic Coverage

Nationwide

What This Program Funds

Buildings and Facilities • Equipment • Operating Costs and Staffing • Starting a Business

Application Process

Application information, requirements, and instructions are available in the Federal Register.

Applications will be accepted May 22, 2020 through September 15, 2021, or until funds are expended.

Interested borrowers should inquire about the program with their lender or contact their local USDA Rural Development state office for more information.

Lenders interested in participating in the program should contact the USDA Rural Development Business Programs Director in the state office where the project is located.

Applicant frequently asked questions
Applicant presentation slides

Contact

For program questions:
Contact the appropriate USDA Rural Development state office.

Topics This Program Addresses

Economic Development • Employment • Infrastructure