USDA Business Loans Vs. SBA Loans

Detailing the Difference Between USDA B&I and SBA 7a Commercial Loans

Did you know North Avenue Capital (NAC) provides lending nationwide in rural areas?  NAC works to save and create jobs in rural America by exclusively lending government-guaranteed loans to manufacturing and production companies, industrial companies, family entertainment centers, and more.  The USDA Rural Development Program has three individual loans within it.  Those are the USDA Community Facilities Loan, USDA Business & Industry Loan, and the USDA Renewable Energy for America Loan.  Below are the differences between the USDA Business & Industry Loan and the SBA 7a Commercial Loan.

The USDA Business and Industry Loan program was developed to help foster employment in rural areas. The Federal government is trying to encourage economic development and support companies to build factories in these underdeveloped small towns and rural areas. The program is not limited to agriculture development, and the funds may be used to develop resorts or manufacturing facilities so long as the property is located in a town or city of fewer than 50,000 people.

The USDA Business and Industry Loan Program is quite similar to the SBA 7a Loan Program and can be an excellent vehicle for many of your funding needs. The table below highlights the key differences between the USDA B&I loan and SBA 7a loan programs.

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