Home > USDA B&I Loans

The Rural Development division of the USDA is home to the Business and Cooperative Programs, one of which is the Business & Industry (B&I) loan guarantee program. This program is designed to be an economic development tool that works with lenders and entrepreneurs to expand the existing private lending structure to qualified borrowers by providing government guaranteed loans. The program is a cooperative effort by the federal government and private lenders to make available loans that may not otherwise be available in rural areas.

Cities or towns with a population not to exceed 50,000 as of the latest census are eligible for the program as well as unincorporated rural areas that are not contiguous with large cities. Those areas immediately adjacent to large cities are designated as urbanized areas and are ineligible.

This type of assistance may require that a business level feasibility study be completed by an independent qualified consultant as part of the application, especially for start up companies and going concerns either acquiring another company or expanding into a new product or market area. Conversely, going concerns with at least three years of profitable history typically are not required to have a feasibility study to receive a B&I loan.


  • Individual
  • Partnership
  • Corporation
  • Cooperative
  • Indian Tribe
  • Public Body

Eligible Lenders.

  • Federal or State Charted Banks
  • Farm Credit System,
  • Bank of Cooperatives
  • Savings & Loan,
  • Bank Holding Company
  • Credit Union
  • Insurance Company (subject to government credit examination and in good standing)

Types of Loans.

  • Real Estate
  • Construction
  • Renovation
  • Equipment
  • Inventory
  • Working Capital
  • Debt Refinance

Term of Loans.

  • Working Capital & Inventory - 7 years
  • Machinery & Equipment - 15 years (or useful life)
  • Real Estate - 30 years.

A typical loan would have a blended use of proceeds and the term would be calculated on a weighted average basis.

Guarantee Amount.

  • 80% on loans up to $5 million
  • 70% on loans from $5 - $10 million
  • 60% on loans greater than $10 million up to $25 million,
  • 60% on loans up to $40 million if cooperative processing value added commodities

Ineligible Loan Purposes.

  • Owner-occupied and rental housing projects
  • Golf courses, race tracks, and gambling facilities
  • Lending, investment, and insurance companies
  • Any line of credit or revolving loan
  • Charitable, religious, or fraternal organizations

Contact us today
to see how a USDA B&I loan could be the right tool to finance your growing business.

"We make a living with what we get, but we make a life with what we give." Winston Churchill