RBS Homepage
Business
Programs
(B&IGUAR;)
(IRP)
(RBEG)
(REDG)
(REDL)
(RBOG)
(REEEP)
Cooperative Programs
National Rural Development Partnership
Special
Initiatives
Regulations
USDA Office Locator
Rural Development Field Offices
USDA eForms
B&I
Loanpack 2000
Library
of Publications
Discover
RBS
Job Opportunities
|
Business and Industry Guaranteed Loans
The Business and Industry (B&I;) Guaranteed Loan Program helps create jobs and stimulates
rural economies by providing financial backing for rural businesses. This program provides
guarantees up to 80 percent of a loan made by a commercial lender. Loan proceeds may be
used for working capital, machinery and equipment, buildings and real estate, and certain
types of debt refinancing. The primary purpose is to create and maintain employment and
improve the economic climate in rural communities. This is achieved by expanding the
lending capability of private lenders in rural areas, helping them make and service quality
loans that provide lasting community benefits. This program represents a true private-
public partnership.
B&I; loan guarantees can be extended to loans made by recognized commercial or other authorized
lenders in rural areas (this includes all areas other than cities of more than 50,000 people and the contiguous and urbanized area of such cities or towns). Generally, authorized lenders include Federal or State chartered banks, credit unions, insurance companies, savings and loan associations, Farm Credit Banks or other Farm Credit System institutions with direct
lending authority, a mortgage company that is part of a bank holding company, and the
National Rural Utilities Finance Corporation. Other loan sources include eligible Rural
Utilities Service electric and telecommunications borrowers and other lenders approved by
RBS who have met the designated criteria.
Assistance under the B&I; Guaranteed Loan Program is available to virtually any legally
organized entity, including a cooperative, corporation, partnership, trust or other profit or
nonprofit entity, Indian tribe or Federally recognized tribal group, municipality, county, or
other political subdivision of a State. Applicants need not have been denied credit elsewhere to apply for this program.
The maximum aggregate B&I; Guaranteed Loan(s) amount that can be offered to any one
borrower under this program is $25 million. A maximum of 10 percent of program funding is available to value-added cooperative organizations for loans above $25 million to a maximum aggregate of $40 million.
Memorandum of Agreement with Colson Services Corporation, a subsidiary of JP Morgan Chase Bank The agreement will provide greater opportunity for rural lenders to participate in Rural Development's Business and Industry (B&I;) guaranteed loan program.
Program Administration
The program is administered at the State level by Rural Development State Offices. To obtain the addresses and telephone numbers of State Offices, visit the Rural Development Field Office locator. For further information on this program, please call the State Office servicing your State.
Available online forms can be found at www.sc.egov.usda.gov
|