USDA Business & Industry Loans

The USDA Business & Industry (B&I) Guaranteed Loan Program helps lenders finance businesses in rural communities. Here is what you need to know — in plain English.

The USDA guarantees a portion of loans made by approved lenders to eligible rural businesses. That guarantee reduces lender risk, which can make financing available for projects that traditional banks might decline.

Rural areas: generally communities of 50,000 people or fewer (project site only)
Loan size: commonly $200,000 to $25 million per borrower
USDA guarantee: currently up to 80% of the loan
Eligible borrowers: for-profit and nonprofit businesses, cooperatives, tribes, and public bodies
Ownership: generally at least 51% U.S

Purchasing or refinancing commercial real estate
Business or franchise acquisition
Construction and expansion
Machinery and equipment
Debt refinancing
Working capital (in certain cases)

Real estate: up to 30 years
Equipment: up to 15 years
Working capital: up to 7 years