The USDA Business & Industry (B&I) Loan Program is a loan program designed to help credit-worthy businesses obtain needed capital to grow and create jobs in their local communities. The program bolsters the availability of credit by guaranteeing loans for businesses in rural areas across the United States. Do you qualify?
The USDA Rural Development Program’s main focus is to help create jobs and stimulate rural economies by providing financial backing for businesses and properties located outside of major metro areas. Businesses that qualify for a USDA business loan include for-profit businesses, nonprofits, cooperatives, federally recognized tribes, public bodies, and individuals.
Qualifications set forth by the USDA
To qualify, individual borrowers must be U.S. citizens or live in the United States after receiving permanent residence status. Private-entity borrowers must demonstrate that loan funds will remain in the United States and the facility being financed will focus on creating new or save existing jobs for rural U.S. residents.
For eligibility, certain geographic and demographic criteria must be met in order to qualify for USDA loans including:
- Rural areas outside a city or town with fewer than 50,000 people.
- Minimum Loan Amount must be equal to or greater than $1MM, with Loan Maximums being $25MM.
- The business and lender may be located in different areas, and commonly are.
- Companies must be within industry guidelines. Some examples of qualifying industries are: hotel/hospitality, manufacturing/production, industry/oil & gas, etc.
- Contrary to popular belief, companies must not be farm/agricultural heavy.
The loans must be used toward the follow in order to be eligible:
- Business conversion, enlargement, repair, modernization or development.
- The purchase and development of land, easements, rights-of-way, buildings or facilities.
- The purchase of equipment, leasehold improvements, machinery, supplies or inventory.
- Debt refinancing to improve cash flow and create jobs.
- Business and industrial acquisitions to maintain business operations and create or save jobs.
Not sure if your business is within the eligible area? Check out North Avenue Capital’s USDA Business Loan Eligibility Map. While viewing the map, take note that the white areas are eligible areas for a USDA B&I Loans and shaded areas are ineligible areas for USDA B&I Loans.
Fun fact: Did you know rural America makes up nearly 97% of the land in the US?
Looking to Apply for a USDA Business Loan?
Our USDA Loan Officers at North Avenue Capital, LLC (NAC) will determine if a USDA B&I loan is right for your financing needs and if you are eligible.
At NAC, our mission is provide capital to empower American business growth. Our employees, executives, partners and associates have a broad range of experience and expertise in private equity, commercial and community banking, private and public commercial real estate, financial planning, hedge fund management, manufacturing, marketing, and engineering.
We are uniquely positioned to dive deep into your business, develop an understanding of your key objectives, and assist in preparing a USDA financing package and application that executes on your vision for growth and expansion. NAC possesses a genuine interest in partnering with you to enhance your business, create jobs in local communities and identify opportunities to improve environmental conditions for the next generation of entrepreneurs.
We have experience starting, building, and operating successful businesses across multiple industries, and we are committed to forming lasting partnerships, not just closing loans. Because NAC is a non-bank, private lender, we can provide our borrowers with the terms specific to their financial needs.
NAC is a specialized commercial lender committed to excellence in every aspect of the debt-financing process with a focus on partnership, communication, and execution. As one of the only non-bank lenders in the country exclusively focused on USDA Rural Development programs, NAC uses its expertise, capital, and relationships to build businesses, grow local economies, and create jobs in rural America.
Ready to work with one of our USDA business loan officers?
Visit our USDA business loans page to learn more or ca 866.526.4950 with any USDA business loan questions or to determine your USDA business loan eligibility.
The NAC Headquarters is located in Florida, with additional office locations in Tenessee, Texas, Georgia, and Nevada. With a license to lend nationwide, we are not limited by geographic location institutions and can partner on projects in all 50 states and U.S. Territories.
