Minimum Loan Amount
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.
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.
Today, USDA Rural Development guarantees a $234 billion portfolio of loans – a massive portfolio few are aware of. North Avenue Capital is involved in lending for the following loan programs: USDA Rural Energy for America Program (USDA REAP), USDA Community Facilities (USDA CF), and USDA Business & Industry (USDA B&I).
Understand just which type of USDA Business Loan fits you and your client's needs by understanding the differences.
The USDA Rural Development Program is made up of five different loan programs. Some of the most popular loan programs include the USDA B&I Loan, USDA CF Loan, USDA REAP Loan, etc. We have simplified eligibility through a comprehensive decision tree.
Because NAC loans are guaranteed by the USDA, the USDA's guidelines are used to prequalify your business. Discounted collateral equal to or in excess of your desired loan amount is required.
Second, USDA Rural Development loan programs are specifically designed for rural communities with populations of less than 50,000. A net worth of 10% for an existing company, or 20% for a startup, is required.
Finally, each of the USDA loan programs has different maximums, ranging from $25 million to $100 million. If all of these factors apply to you, a USDA-guaranteed loan could be within reach.
Our customers are often surprised to hear that we only lend to rural businesses — and even more surprised to discover they’ve actually been operating one. 97% of the geographic U.S. is considered rural. Find out if your address qualifies in 10 seconds.