What is the USDA Commercial Loan Program?

from North Avenue Capital


The USDA Business & Industry (B&I) Loan Program is a government-backed loan program designed to help credit-worthy rural businesses obtain needed capital to grow and create jobs in their local communities. The program bolsters the availability of private credit by guaranteeing loans for businesses in rural areas across the US. 

Goal of Program

USDA Business Loans help to create jobs and stimulate rural economies by providing financial backing for rural businesses and properties. 

Build Business.  Grow communities. Strengthen economies. 

Businesses That Qualify

For-profit businesses



Federally-Recognized Tribes

Public Bodies


Loans Available $1MM to $25MM

USDA B&I Loans through North Avenue Capital require our Borrowers to need between $1 million and $25 million dollars.

Looking for less than $1MM?  

What is an Eligible Area?

Business headquarters located in cities/towns with a population of less than 50,000 qualify as Rural America.

Did you know rural America makes up nearly 97% of the land in the US? 

*White areas are eligible areas for a USDA B&I Loans. Shaded areas are ineligible areas for USDA B&I Loans 

Find Out If You Qualify for a USDA Commercial Loan from NAC 

  • *Be advised, we do not fund loans under $1,000,000

What Sets an NAC USDA Commercial Loan Apart?

NAC is the only specialized commercial lender that exclusively lends USDA B&I Loans nationwide. It's all we do, and we know how to work with the USDA to get the deals to the finish line. We offer competitive interest rates, flexible terms, and high LTVs.

Interest Rates

NAC has the opportunity to offer competitive rates negotiated between the borrower and the lender based on Wall Street Journal Prime Rate at the close of the loan. Rates are typically variable. Higher credit borrowers benefit from lower rates.


Collateral (e.g., real estate, machinery, or equipment) should be equal to or greater than the loan amount.  For example, if you are seeking to borrow $5 million, then you should have at least $5 million in the land, equipment, or other fixed assets to securitize the loan against.

Flexible Terms

Because NAC is a non-traditional, non-bank, private lender, we have the opportunity to provide our borrowers with the terms that fit their financial needs.  If you are looking for business financing nationwide in rural America, Look North. 

Terms & Fees

North Avenue Capital (NAC) fully abides by the guidelines and regulations set forth by the United States Department of Agriculture (USDA) via the USDA Rural Development Program.  NAC is registered as a nationwide USDA Business & Industry (B&I) multi-state lender. 

Maximum Advance Rates

Real Estate: 80% Fair Market Value (FMV)

Equipment: 70% Fair Market Value (FMV)

Inventory: 60% of Book Value (Raw Inventory & Finished Goods Only)

Accounts Recievable: 60% of Book Value (Less than 90 days)

Maximum Loan Guarantee

80% = Loan amount < $5MM

70% = Loan amount: $5MM-$10MM

60% = Loan amount > $10MM


Interest Rates

Wall Street Journal Prime at Loan Close + 1-3%

(1-3% is based off of the risk of the business, industry, and borrower credit)


Loan Terms

  • Maximum term on machinery & equipment is its useful life or 15 years, whichever is less
  • Maximum term for real estate is 30 years
  • Maximum term on working capital not to exceed 7 years
  • Loans must be fully amortized; balloon payments are not permitted
  • Interest-only payments may be scheduled in the first 3 years

Applicable Fees

  • Reasonable & Customary Fees are negotiated between the borrower and lender

  • Initial guarantee fee that is paid at the time the Loan Note Guarantee is issued

  • Annual renewal fee on the outstanding balance of the guaranteed portion of the loan that is set by Rural Development at a rate published annually in the Federal Register


Underwriting & Security Requirements

  • Proposed operation must have realistic repayment ability
  • New enterprises will be asked to obtain a Feasibility Study from a nationally recognized independent source
  • The Business & Owners must have a good credit history
  • At loan closing/project completion, the business must have a tangible balance sheet equity position of: 10% or more for existing businesses, or 20% or more for new businesses. 
  • Personal and Corporate Guarantees are normally required from all proprietors, partners (except limited partners), and major shareholders (i.e., all those with a 20% or greater interest)

USDA Business Loans Available 

from North Avenue Capital

Renewable Energy for America