USDA B&I Loan

USDA B&I Loan

The USDA B&I (Business & Industry) Loan Program boosts the economic health of rural communities by enhancing access to business capital. This loan program is designed to assist rural businesses (with good credit) in obtaining needed credit to expand their operations. Also, it helps businesses to save and create jobs in local communities of the United States.

This program reinforces the availability of private credit by assuring businesses of loans in rural areas across the country. The primary goal of this loan program is not only to create jobs, but also to intensify rural economies by providing financial backing not only for rural businesses but properties as well.

What are the businesses that qualify for these guaranteed loans?

Here’s a list of all the businesses that qualify for USDA B&I loans:

  • For-profit businesses
  • Nonprofits
  • Cooperatives
  • Federally-recognized Tribes
  • Public Bodies
  • Individuals

These loans seem very similar to the SBA (Small Business Administration) loans. However, they primarily focus on the promotion of small businesses and helping the needy get employment in rural communities.

What is the Loan Term for USDA B&I Loans?

The maximum term for this loan is up to 30 years. These terms are negotiated by you and the lender, but the USDA has set placed maximum terms based on how you intend to use the loan.

What Can USDA Business Loans Be Used for?

You can use a USDA business loan for:

  • Purchase of commercial real estate, its expansion or enhancement
  • Buying machinery, supplies, inventory, or supplies
  • Working capital
  • Business acquisition when the loan creates or saves jobs
  • Refurbishing or developing business

While not every business is eligible to apply for this loan, these loans are undoubtedly a great source for businesses as well as nonprofits when it comes to acquiring the much-needed financing in rural areas.

What is the Loan Amount?

While there’s no minimum amount to obtain a loan, USDA B&I loans usually don’t exceed $10 million. However, there may be some exceptions when loan amounts go up to $25 million or even more.

SBA Loan - Step 1 of 2
Selected Value: 200

Loan Program Eligibility & Benefits

You must own or lease a commercial building, no home based companies

Anyone who owns 20% or more needs to have a 690 or better personal credit score

2019 Tax Return is required for SBA Loans and must be operating on profit currently

The Interest is Tax deductible and Early Pay-off options are available