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USDA Business and Industry Guaranteed Loans
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Catalog of Federal Domestic Assistance Number: 10.768 |
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USDA will accept applications for this Business and Industry Guaranteed Loan program until Sept. 15, 2010, or until all funds are expended. Recovery Act funding will be available through Sept. 30, 2010. |
Program
web site |
http://www.rurdev.usda.gov/rbs/busp/b&i_gar.htm
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| Sponsor |
USDA Rural Development |
| Deadlines |
Applications accepted on an ongoing basis |
| Purpose |
The Business and Industry (B&I) Guaranteed Loan Program helps create jobs and stimulates rural economies by providing financial backing for rural businesses. This program provides guarantees up to 80 percent of a loan made by a commercial lender. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. The primary purpose is to create and maintain employment and improve the economic climate in rural communities. This is achieved by expanding the lending capability of private lenders in rural areas, helping them make and service quality loans that provide lasting community benefits.
A borrower must be engaged in or proposing to engage in a business that will:
- Provide employment;
- Improve the economic or environmental climate;
- Promote the conservation, development, and use of water for aquaculture; or
- Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems.
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| Eligibility |
A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual. Individual borrowers must be citizens of the United States (U.S.) or reside in the U.S. after being legally admitted for permanent residence. Corporations or other nonpublic body organization-type borrowers must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. B&I loans are normally available in rural areas, which include all areas other than cities or towns of more than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns. |
Geographic
coverage |
Nationwide |
Amount of
funding |
The total amount of Agency loans to one borrower must not exceed $10 million. The Administrator may, at the Administrator’s discretion, grant an exception to the $10 million limit for loans of $25 million under certain circumstances. The Secretary may approve guaranteed loans in excess of $25 million, up to $40 million, for rural cooperative organizations that process value-added agricultural commodities. |
Application
process |
The program is administered at the State level by Rural Development State Offices. Please contact your state office for application information. You can use the Rural Development Field Office locator at http://www.rurdev.usda.gov/recd_map.html to find your state office. |
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For more information contact:
Please use the Rural Development Field Office locator at http://www.rurdev.usda.gov/recd_map.html to find the State Office servicing your State. Summaries of funding programs are provided by RAC for your convenience. Please contact the funder directly for the most complete and current information. |
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