USDA Business and Industry Loans (B&I)
The B&I Program helps stimulate rural economies by providing financial backing for rural businesses. The project being financed must be located in a rural area, but it is not necessary for the business to be headquartered in a rural area. Rural communities are broadly defined under the B&I Program.
Please contact us for details and a proposal for your loan.
Contact Us.
| USDA
Business and Industry Loans |
| Purpose |
Acquire land,
purchase or construct a building, acquire machinery and
equipment, refinance existing business debt, provide working
capital |
| Loan
Amount |
$1,000,000
to $10,000,000 |
| Eligible
Area |
Cities of
fewer than 50,000 people |
| Eligible
Borrower Group |
Operating
businesses
Nonprofit organizations
Real estate development and investment businesses
• Owner-occupied operating companies
• Commercial lease properties
• Multi-family housing
• Community facilities |
| Eligible
Businesses |
•
Manufacturing
• Business Services
• Recreation & Tourism
• Retail
• Hospitality |
•
Wholesale and Distribution
• Healthcare, including Home Health and Assisted
Living
• New Business Ventures |
|
| Ineligible
Businesses |
•
Golf courses
• Businesses with more than 10% of gross revenue
from legalized gambling
• Lending or investment institutions
• Churches and charitable organizations
• Insurance companies |
| Eligible
use of Proceeds |
•
Real estate acquisition or expansion
• Purchase of business
• Machinery and equipment
• Furniture and fixtures
• Working capital |
•
Accounts receivable and inventory
• Refinance existing loans, leases, or other
debt
• Loan fees, professional services, and feasibility
study costs |
|
| Loan
Repayment Terms |
| Real estate: 30 Years |
| Equipment: 15 Years |
| Working capital: 7 Years |
| Structure: Monthly payments
without call provisions; no balloons |
|
| Interest
Rates |
Variable
over WSJ prime rate; adjusted quarterly |
| Required
Borrower Equity |
Minimum
tangible balance sheet equity of:
• 10% for existing business
• 20% for new business |
General
Credit
Qualification |
•
Adequate cash flow to meet debt obligations and operating
expenses
• Adequate collateral value
• Life insurance on key principals
• Personal guarantee required for owners with 20%
or more ownership |
Contact our office today to begin the qualification process:
National Business Services
1-509-308-1450
Email:
(Contact us by clicking here)
*Disclaimer - This is not a solicitation or offer to sell securities or other financial instruments.
National Business Services does not provide financial, tax, or legal advice. This content presented here is informational only. Please consult with your financial and legal counsel regarding this transaction.
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