Business & Industry Guaranteed Loans

The U.S. Department of Agriculture’s Rural Business-Cooperative Service (RBS) is one of several agencies charged with economic development in rural communities. One of this agency’s programs that business owners and lending institutions may find relevant is the Business & Industry (B&I) Guaranteed Loans. Under this program, the bank or lending company receives a federal guarantee on the loans it provides rural-based businesses and non-profit organizations.

B&I Program Objectives And Requirements

The guarantee lowers the risk for the lenders and consequently makes financing more accessible for loan applicants. By establishing more financing security through this program, the government is able to induce or boost rural economic activity.

Whether you have an enterprise, non-profit organization, or even a single proprietorship, we can answer your financing needs through the B&I program to help you realize plans that coincide with rural development. Such aims could be:

  • Employment generation and retention
  • Economic and environmental climate improvement
  • Reduction of dependency on nonrenewable energy sources

We’ll be there to help finance your company’s expansion or modernization, for example. This may involve purchasing equipment, developing land, constructing facilities, or even business acquisitions that directly provide more employment opportunities. As a professional commercial lending firm, we are here to work with you through the entire process.

Features Of The B&I Program

A B&I loan is subject to certain terms outlined in the program’s regulations. There are maximum limits to the federal guarantee, which depend on the loan amount. At $5 million and below, for example, an 80% guarantee is the highest possible. What the actual percentage will be for a particular transaction is negotiated between RBS and the lending company. Interest rates are also a matter of negotiation between lender and business while the terms are based on the subject of the loan. Terms for working capital, for instance, should not be more than 7 years.

Whether you plan to start a regular business, a cooperative or a development organization, we are more than willing and capable to support your financing needs through the B&I program. Let us work together and contribute to your organization’s and community’s growth.