Propel Rural Businesses with Government-Backed Funding
USDA B&I Loans
Customer Testimonials
USDA B&I Loans Services
USDA B&I Loans promote economic vitality in rural areas by offering flexible terms and higher loan limits than many conventional programs. Interest rates are negotiated between the lender and the borrower and cannot be more than the rates the lender customarily charges on similar non-guaranteed loans. Eligible projects can include real estate acquisitions, machinery purchases, or debt refinancing aimed at boosting local employment. The program’s goal is to strengthen rural economies, encourage business development, and improve overall quality of life in these communities.
Commercial Finance Partners assists in evaluating your rural location, business model, and expansion plans to gauge USDA B&I suitability. We streamline the application process, coordinate with approved lenders, and ensure compliance with government guidelines. By leveraging our knowledge of both private lending and government-backed programs, you gain a clear path to securing the capital needed for sustainable growth.
Negotiated Interest Rates
Rates are negotiated with your lender and cannot exceed its rates on similar non-guaranteed loans.
Broad Eligibility
Access funds for real estate, equipment, or working capital aligned with rural development.
Job Creation Focus
Strengthen local communities by adding or retaining rural employment opportunities.
Flexible Repayment Terms
Structure loan durations to match operational cash flows and business cycles.
USDA B&I Loans Business Case Studies
How USDA B&I Transformed a Rural Manufacturing Facility
Added advanced production equipment:
- Lowered production overhead
- Improved product quality
- Boosted sales in new markets
- Heightened local economic impact
- Maintained stable workforce
How USDA B&I Revitalized a Small Town Hotel
Attracted tourism and events:
- Renovated outdated facilities
- Expanded hospitality services
- Created full-time positions
- Stimulated local businesses
- Elevated regional profile
The importance of
USDA B&I Loans
Why Choose Commercial Finance Partners:
✦
We understand USDA B&I guidelines and streamline compliance steps.✦
We advocate for your rural project with experienced lenders and government entities.✦
We ensure funding structures match seasonal or market-driven revenue cycles.✦
We aim to maximize community impact while securing your business growth.✦
We remain committed to your long-term success, from application to repayment.
USDA B&I Loan Terms and Fees
- Maximum loan: Up to $25 million in total B&I guaranteed loans per borrower; the Secretary may approve up to $40 million for rural cooperatives that process value-added agricultural commodities.
- Guarantee: Set by USDA each fiscal year in a Federal Register notice, up to a regulatory maximum of 90% of eligible guaranteed loan loss.
- Fees: A one-time guarantee fee and an annual guarantee retention fee, both calculated on the guaranteed portion at rates USDA sets each fiscal year in a Federal Register notice; by regulation the B&I guarantee fee rate cannot exceed 5%. Qualifying projects may receive a reduced guarantee fee.
- Term: Set by the lender with USDA concurrence based on the useful life of the assets financed, up to 40 years, and repaid on a schedule without a balloon payment.
- Interest rate: Fixed, variable or a combination, negotiated between the lender and the borrower, and no higher than the rate the lender charges on similar non-guaranteed loans.
Sources: 7 CFR part 5001 (USDA OneRD guaranteed loans); 7 CFR 5001.407 (guarantee percentage); 7 CFR 5001.454 (guarantee fee); 7 CFR 5001.455 (retention fee).
USDA B&I Loan Requirements
- Eligible borrowers: Cooperatives, corporations, partnerships or other legal entities operated on a profit or nonprofit basis, Indian tribes, public bodies and individuals that are engaged in or proposing to engage in a business.
- Individuals: Individual borrowers must generally be U.S. citizens or legally admitted permanent residents.
- Rural location: The project must be in a rural area: any area not in a city or town of more than 50,000 inhabitants and not in the urbanized area contiguous and adjacent to such a city or town, with limited exceptions for certain cooperative and local foods projects.
- Equity: Existing businesses can qualify with at least 10% balance sheet equity; new businesses generally need at least 20% balance sheet equity or an equity investment of 25% or more of total eligible project cost, with different thresholds for new businesses with qualifying sales contracts or construction projects.
- Ineligible: Charitable and fraternal organizations, and projects whose primary purpose is residential housing such as apartments, duplexes or timeshares.
What USDA B&I Loans Can Finance
- Purchase and development of land, buildings and associated infrastructure for commercial or industrial properties, including expansion or modernization.
- Business acquisitions, provided jobs will be created or saved.
- Machinery and equipment.
- Startup costs, working capital, inventory and supplies in the form of a permanent working capital term loan.
- Pollution control and abatement, takeout of interim financing and qualifying debt refinancing.
Agricultural production is eligible only when it is not eligible for FSA farm loan programs and is part of an integrated business that also processes agricultural products. Farms and ranches should compare FSA loans and our farm, ranch and timber land loans. Built cell towers, broadcast towers and solar or wind projects may fit our rural infrastructure loans.
Commercial Finance Partners assists in evaluating your rural location, business model and expansion plans to gauge USDA B&I suitability, and coordinates with approved lenders. See all of our USDA and agricultural loans.
USDA B&I Loan FAQs
What is a USDA B&I loan?
A USDA B&I loan is a business loan from an approved lender that USDA Rural Development partially guarantees under the Business & Industry program. The program’s purpose is to improve, develop or finance business, industry and employment and improve the economic and environmental climate in rural communities.
What is the maximum USDA B&I loan amount?
A borrower can have up to $25 million in total B&I guaranteed loans, including existing balances. The Secretary may approve up to $40 million for rural cooperatives that process value-added agricultural commodities. USDA sets the guarantee percentage each fiscal year in a Federal Register notice, up to a regulatory maximum of 90% of eligible guaranteed loan loss.
What are the USDA B&I loan requirements?
The borrower must be engaged in or proposing to engage in a business, and the project must generally be in a rural area outside any city or town of more than 50,000 inhabitants and its adjacent urbanized area. Existing businesses can qualify with at least 10% balance sheet equity, and new businesses generally need at least 20% balance sheet equity or a 25% investment in eligible project costs.
What are USDA B&I loan terms?
The lender sets the term with USDA concurrence based on the useful life of the assets financed, up to 40 years, without a balloon payment. Rates can be fixed or variable and are negotiated with the lender. USDA sets the one-time guarantee fee and the annual retention fee each fiscal year in a Federal Register notice; by regulation the B&I guarantee fee cannot exceed 5% of the guaranteed portion.
Who are USDA B&I lenders?
Eligible lenders include federal and state chartered banks, Farm Credit System institutions, savings and loan associations, savings banks and credit unions, as well as other lenders the Agency approves. Commercial Finance Partners coordinates with approved lenders and streamlines the application process.
The financing solutions provided by Commercial Finance Partners were exactly what I needed. Their team was professional and helped me every step of the way
Matthew Rodriguez Business Owner