Consolidated Farm and Rural Development Act
The Business and Industry program bolsters the availability of private credit by guaranteeing loans made by lenders to rural businesses. This program improves the economic health of rural communities by increasing access to business capital through loan guarantees that enable commercial lenders to provide affordable financing for businesses in eligible rural areas.
Loan or Loan Guarantee
Applications are accepted from lenders on an on-going basis.
A B&I Loan can be used successfully with other funding opportunities. For example, borrowers will sometimes use different guaranteed loan products to finance a single project. It can sometimes be difficult to match up the timing of a loan and a grant, but there is no restriction on the borrower also receiving a grant through a different program to support their project
Individual borrowers must be citizens of the U.S. or reside in the U.S. after being legally admitted for premanent 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. Eligible areas are rural areas not in a city or town with a population of more than 50,000 inhabitants but the borrower’s headquarters may be based within a larger city as long as the project is located in an eligible local area. Check eligible addresses here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=ONERD
To participate, lenders must be subject to supervision and credit examination by the applicable agency of the United States or a State including: Federal and State-chartered banks, savings and loans, Farm Credit Banks with direct lending authority, and credit unions. Other non-regulated lending institutions may also be approved by the Agency under the criteria of the OneRD regulation.
Varies by state. See agency website.