USDA OneRD Loans
USDA Rural Development Loan Programs
From North Avenue Capital
- Government-Guaranteed Lending
- $2 Million Minimum Loan Amount
- Direct Nationwide Lender
The rural reality is harsh but true: plans crafted on Main Street are less likely to secure backing from Wall Street.
The entrepreneurs, developers, and job creators in these communities have long been at a capital disadvantage – until now.
The USDA Rural Development Program is designed to strengthen the economies and bolster the quality of life in rural America. The only problem? Few lenders know how to access it. We do.
In fact, USDA-backed lending is all we do.
Learn More about USDA Business Loans
from North Avenue Capital
A number of years ago, the USDA crafted a novel solution to the capital challenges experienced by rural employers and entrepreneurs. The department best known for its regulation and support of agriculture devised a series of plans to strengthen the economies and bolster the quality of life in rural areas. The USDA addressed the underlying concerns of traditional lenders by participating as a guarantor and ultimately easing access to capital in rural markets.
For 2024, the USDA budgeted about $180.6 billion across loan and grant programs, along with other initiatives within its department – a large collection of loan and grant programs few are aware of1. North Avenue Capital is involved in lending for the following loan programs, specifically and exclusively: USDA Rural Energy for America Program (USDA REAP), USDA Community Facilities (USDA CF), and USDA Business & Industry (USDA B&I).
USDA OneRD Loan Programs
USDA Business & Industry Loans
Qualifying Businesses
Small to midsized rural businesses
Max Community Population
50,000
Geographic Location
Rural America
Max Loan Amount *per borrower
$25 Million
Annual USDA Guarantee Fee
Yes
USDA Community Facilities Loans
Qualifying Businesses
Colleges, schools, hospitals, parks, daycare, assisted living, etc.
Max Community Population
50,000
Geographic Location
Rural America
Max Loan Amount *per borrower
$100 Million
Annual USDA Guarantee Fee
Yes
USDA Rural Energy for American Program Loans
Qualifying Businesses
Solar/wind/energy developers, anaerobic digesters, etc.
Max Community Population
50,000
Geographic Location
Rural America*
Max Loan Amount *per borrower
$25 Million
Annual USDA Guarantee Fee
Yes
* Excluding Agricultural Producers
FAQs
North Avenue Capital is a multi-state lender with headquarters in Florida and partners for USDA loans in all 50 states. As a multi-state lender, NAC can close loans in every state in the country, along with U.S. Territories.
The USDA defines ‘rural’ by the 2010 Census, meaning a lot of areas that are in question, actually could be considered ‘rural.’ Did you know that 97% of America’s landmass is considered ‘rural’ by this definition? Check out our Map online!
Contact an experienced USDA commercial lender, like North Avenue Capital, to walk you through applying for a USDA business loan and help secure needed funding for your business.
Lenders can require individuals who are vital in the daily operation and success of the business for which the loan is being granted – the business’ industry expert. For example, someone borrowing money for a hotel, could be required to take out a life insurance policy on the person who has past experience operating a hotel.
The USDA Rural Development Loan Program does have a rural location stipulation, with the exception of the Food Supply Chain Loan program. Meaning, to qualify for USDA funding the business must be located in a city or town with a population of fewer than 50,000 residents. See if your location qualifies as rural with this interactive map. Use this decision tree to find out if your business is eligible for a USDA commercial loan. In addition to location and the amount of financing you’re seeking, the USDA grants loans more favorably to borrowers with higher credit scores and tangible assets.
In addition to the USDA Home Loans, the USDA offers government-backed commercial loans through its OneRD Guarantee Loan initiative, also known as the USDA Rural Development Loan Program. USDA business loan programs do include financing for owner-occupied or tenant-occupied properties. For tenant-occupied properties, each tenant lease agreement must be for an eligible industry under the USDA regulations. The USDA will not guarantee loans for churches, golf courses, gambling facilities, strip clubs, or CBD dispensaries.