The USDA Business and Industries (B&I) Loan for Commercial Property in Small Towns 

Need a USDA Business and Industries Loan for a commercial property in a small town?  Simply input your loan request into C-Loans.  When the system asks for, "Loan Type", please choose "USDA Loan." 

The USDA Business and Industries Loan (B & I Loan) Program is a Federal loan guarantee program that is designed to encourage the commercial financing of rural businesses.  The reason why the Federal government is involved is because it wants to create and save rural jobs and improve the economic and environmental climate of rural communities.

Here's what makes a B&I loan different:  The Business & Industry Loan program is lender-driven. The USDA guarantees the loan rather than lending directly. A commercial lender requests the B & I guarantee, and, if it is approved, the commercial lender makes and services the loan.

The benefits of the B & I Guaranteed Loans Program for businesses is that the borrower gets a higher loan amount.  The reason why is because the guarantee strengthens the loan application, allowing the bank to feel comfortable with a smaller equity injection.

B&I loans also offer lower interest rates and longer repayment terms.  This greatly assists businesses that may not qualify for conventional commercial real estate financing, which provides the rural business greater stability and leads to greater growth, expansion and rural employment.

Below is a list of the authorized uses of the loan funds.  A borrower must be engaged in, or proposing to engage in, a business that will (1)  Provide employment; (2)  Improve the economic or environmental climate; (3)  Promote the conservation, development, and use of water for aquaculture; or (4)  Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems, and other renewable energy resources.

Authorized Loan Purposes:

  1. Business and industrial acquisitions, construction, conversion, expansion, repair, modernization or development costs
  2. Purchase of equipment, machinery or supplies.
  3. Start-up costs and working capital.
  4. Processing and marketing facilities.
  5. Pollution control and abatement.
  6. Refinancing for viable projects, under certain conditions.
  7. Purchase of start-up cooperative stock for family sized farms where commodities are produced to be processed by the cooperative.

Bottom line, the USDA Building and Industry Loan (B&I Loan) program is a terrific program if the commercial property is located in a town of less than 50,000 residents.

  A great many small motels are financed using the B&I loan program.

Need a USDA Business and Industries Loan for a commercial property in a small town?  Simply input your loan request into C-Loans.  When the system asks for, "Loan Type", please choose "USDA Loan."

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