What is the USDA B&I program?
No…… its not for meat inspections.
The Business and Industry (B&I) Guaranteed Loan Program is a loan guarantee program designed to assist credit-worthy rural businesses obtain needed credit for most any legal business purpose. The intent is to save and create jobs in rural America. Loans range from $1,000,000-$20,000,000 million dollars. The bank will receive a loan guarantee up to 80% depending on loan amount.
How are you different from SBA?
The SBA 7(a) and B&I Guaranteed Loan programs are similar in that a loan guarantee is provided, but the programs operate independently. The B&I program is specifically targeted to rural businesses. The SBA is just for owner occupied, the USDA is not. So the USDA can finance:
- Shopping Centers
- Strip Centers
- Office Centers
- Manufacturing Plants
- RV Parks
- Medical Centers
- Living Centers
What are the benefits to the borrower?
Borrowers can benefit from better pricing and terms with the B&I loan guarantee in place than are typically given with conventional loans. The loans must be fully amortized, without calls or balloon repayment structures. Longer terms can reduce additional loan fees that may be incurred in the future on shorter term loans or balloon loans. The interest rates for the loans are negotiated between the lender and the applicant and may be either fixed or variable (or a combination of fixed and variable).
What types of businesses are eligible?
Businesses with facilities located in rural areas that save or create jobs. Most types of businesses are eligible, including those engaged in the manufacturing, wholesale, retail and service industries. Eligible entities include partnerships, individuals, cooperatives, for-profit and nonprofit corporations, including publicly-traded companies, tribal groups, or public bodies. Any size business may be eligible, but there are certain industries that may be restricted.
How do I know if my Business is located in a “rural” area?
Contact www.Nationsloan.net or 985-778-2600
Normally, projects seeking a B&I guaranteed loan need to be located in eligible rural areas, which include all areas other than cities or towns larger than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns. Cooperative organizations and local foods projects may be funded in both rural and urban areas in certain circumstances. Eligibility of a site may be determined by entering the address at the following website: