USDA Business and Industry (B&I) Guaranteed Loan Program
USDA loan guarantees up to $10 million (or $25 million in some cases) for rural businesses that create or save jobs in towns under 50,000 population.
About this program
The USDA Rural Development B&I Guaranteed Loan Program helps rural businesses, cooperatives, farm operations, and Indian tribes by guaranteeing 60-80% of loans made by private lenders. A reserved portion of B&I funds supports the Local and Regional Food Systems Initiative, prioritizing projects that process, distribute, aggregate, store, or market locally-produced foods. Loans typically max at $10 million per borrower, though higher-priority projects may qualify for guarantees up to 90% on loans of $5 million or less. Funds can be used for business acquisition, real estate, equipment, working capital, debt refinancing, and expansion.
Eligibility
For-profit or nonprofit businesses, cooperatives, federally recognized Indian tribes, public bodies, and individuals located in rural areas (towns/villages with populations under 50,000); must create or save jobs in rural areas and demonstrate need for the guarantee.
Requirements
- Rural location (population under 50,000)
- Job creation or retention plan
- 10-20% borrower equity contribution