USDA & SBA 7(a) Business Loans: A Comparative Overview

Finding the Right Fit for Your Business

Loans From

North Avenue Capital

USDA OneRD Loans

Loan Parameters

Minimum Loan Amount: $2 Million
Maximum Loan Amount: $25 Million

Terms & Amortization

Up to 30 Years

Location of Project

Nationwide in Rural Areas (Max population of 50,000)

Annual Renewal Fee

Required

Funding Timeline

120+ days

Use of Funds

Acquisition, Refurbishment & Updates, Refinance, Working Capital, Equipment Purchase, Real Estate Purchase, Startups, New & Ground-Up Construction
* per entity

North Avenue Capital offers three types of USDA Business Loans through the U.S. Department of Agriculture OneRD lending program to support credit-worthy businesses and nonprofits in eligible rural areas. These three lending types within the USDA OneRD Program, encompass three different needs: general business, nonprofits and organizations, and renewable energy projects. The primary goals of USDA OneRD loans are to create jobs, modernize facilities, and boost the local economy. With terms extending up to 30 years and a maximum loan limit of $25 million, USDA OneRD provide a long-term financing solution for rural development.

SBA 7(a) Loans POWERED BY VERITEX COMMUNITY BANK

Loan Parameters

Minimum Loan Amount: $500,000
Maximum Loan Amount: $5 Million

Terms & Amortization

Up to 25 Years

Location of Project

Nationwide Funding with
No Rural Constraint

Annual Renewal Fee

No Annual Renewal Fee

Funding Timeline

60-90 Days*

Use of Funds

Acquisition, Partnership Buyout, Refinancing non-SBA Debt, Working Capital, Equipment Purchase, Real Estate Purchase, Business Renovations
* per entity

SBA 7(a) loans at North Avenue Capital are powered by Veritex Community Bank, which provides SBA 7(a) Loans in partnership with the Small Business Administration to assist small businesses across the United States. These loans offer funding for various purposes, including business acquisitions, equipment purchases, working capital, and expansion. Unlike USDA loans, SBA 7(a) loans are not available to nonprofits and have a maximum loan limit of $5 million, with terms up to 25 years. SBA 7(a) Loans are a versatile financing option designed to meet the diverse needs of small businesses nationwide.

Learn more about SBA 7(a) Loans Powered by Veritex Community Bank and see how they can empower your business growth.

Finding the Right Fit

Both USDA and SBA 7(a) Loans from NAC are designed to provide significant financial support tailored to different business needs and circumstances. Whether you are looking to expand your operations in rural America or need versatile funding options for your small business anywhere in the United States, NAC offers a loan product that fits your requirements.

By understanding the unique benefits of each loan type, you can make an informed decision that best supports your business’s growth and success. Explore our loan programs today and discover how NAC can be your partner in business success.

USDA OneRD Loan Programs offered by North Avenue Capital

USDA Business Loans

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 of. 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).
*NAC does not participate in USDA Residential Lending of any kind.
Small Business Lending Powered by Veritex Community Bank

SBA 7(a) Loans with North Avenue Capital

The SBA 7(a) Loan Program is the SBA 7(a)’s primary initiative for offering financial support to small businesses, with loan amounts up to $5 million. At North Avenue Capital, SBA 7(a) Loans are provided and funded through our parent company, Veritex Community Bank. Veritex is a preferred lender according to the SBA and has closed over three-quarters of a billion dollars in SBA loans as of 2024. NAC offers SBA 7(a) loans starting at $500,000, available nationwide.

Comprehensive Business Financing Solutions with NAC

North Avenue Capital stands as a trusted provider of comprehensive business financing solutions, offering both USDA Business Loans and SBA 7(a) Loans to meet diverse business needs. Whether you are an established business in a rural area looking to expand with USDA loans or a small business seeking growth opportunities nationwide with SBA 7(a) loans, NAC delivers tailored financing options to support your goals. By providing competitive loan amounts, flexible terms, and a commitment to customer success, NAC ensures that your business can access the necessary resources to thrive and grow.

Refinancing a SBA 7(a) Loan with a USDA Loan

Refinancing a SBA 7(a) Loan with a USDA Loan can be a strategic move, especially if your business is located in a USDA-deemed rural area. Here are the major points to consider:

Refinancing a USDA Loan with a SBA 7(a) Loan

In some instances, refinancing a USDA Loan with a SBA 7(a) Loan might be beneficial, particularly if you have paid off a significant portion of your USDA loan. Here are important considerations: