What can you use the USDA Business Loan Funds for (but are not limited to):

• 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 when refinancing improves cash flow and creates jobs.
• Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.

What is max loan amount guaranteed:

• 80 percent for loans up to $5 million.
• 70 percent for loans between $5 and $10 million.
• 60 percent for loans exceeding $10 million, up to $25 million maximum.

What are the loan terms?

• Maximum term on real estate is 30 years.
• Maximum term on machinery and equipment is for its useful life or 15 years, whichever is less.

Who may qualify for these guaranteed loans?

• For-profit businesses.
• Nonprofits.
• Cooperatives.
• Federally-recognized Tribes.
• Public bodies.

What are the borrowing restrictions? 

• Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence.
• Private-entity borrowers must demonstrate that loan funds will remain in the U.S. and the facility being financed will primarily create new or save existing jobs for rural U.S. residents.

What is an eligible area?

• Any area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town
• The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area
• Check eligible addresses for Business Programs