from North Avenue Capital
The USDA Business & Industry (B&I) Loan Program is a government-guaranteed loan program designed to help credit-worthy rural businesses obtain the 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 U.S. NAC is ready and willing to help borrowers across the country grow business and influence.
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.
For-profit Businesses
Nonprofit Organizations
Cooperatives
Federally-Recognized Tribes
Public Bodies
Individuals
USDA B&I Loans through North Avenue Capital require our borrowers to finance from $2 million business loans and up.
Businesses 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 U.S.?
*The white areas are eligible areas for a USDA B&I Loans. Shaded areas are ineligible areas for USDA B&I Loans.
NAC is the only direct commercial lender in the country that exclusively lends USDA Business Loans nationwide through the USDA Rural Development Program. It's all we do. We specialize in getting deals to the finish line by offering competitive interest rates, flexible terms, and high LTVs.
NAC has the opportunity to offer competitive rates negotiated between the borrower and the lender based on the Wall Street Journal Prime Rate at the close of the loan. Rates are typically variable. Higher credit borrowers benefit from lower rates.
Collateral (tangible assets) should be equal to or greater than the loan amount. All collateral is discounted at appropriate rates.
Because NAC has the opportunity to provide our borrowers with terms that fit their financial needs. If you are looking for business financing nationwide in rural America and beyond, Look North.
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) direct lender.
Commercial Landholdings: 80% Fair Market Value (FMV)
Equipment: 70% Fair Market Value (FMV)
Inventory: 60% of Book Value (Raw Inventory & Finished Goods Only)
Accounts Receivable: 60% of Book Value (Less than 90 days)
80% = Loan amount < $5MM
70% = Loan amount: $5MM-$10MM
60% = Loan amount > $10MM
Wall Street Journal Prime at Loan Close + 1-3%
(1-3% is based off of the risk of the business, industry, and borrower credit)
from North Avenue Capital
USDA B&I Loan is one of many names you will hear brokers, financial subsidiaries, and owners use in the industry. USDA B&I stands for USDA Business & Industry Loan. It is one of the five loans under the USDA Rural Development Program umbrella. USDA B&I Loans from North Avenue Capital start at $2 million and have a dynamic maximum of $25 million. More ways you will see USDA B&I Loans said in the market is simply a USDA Business Loan or a USDA Commercial Loan. The USDA Rural Development Program is the sister program of the Small Business Loan Program or SBA Loan Program.
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!
North Avenue Capital (NAC) finances projects of $2 million and higher. Our average loan size as of 2022, is $13 million.
Yes! We fully fund the loan from start to finish and service the loan for the life of the loan.
Yes! NAC can lend for refinancing, acquisition, start-up businesses, new construction loans, etc. We also can add working capital to a refinance, if applicable.
Reach out! The sooner the better. Reach out via online chat, over the phone directly, or send an email to [email protected]