Business and Industry Loan Guarantees

OneRDGuarantee@usda.gov

USDA Rural Development state offices

The purpose of the Business and Industry Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.

Funds may be used for:

• Business conversion, enlargement, repair, modernization, or development
• The purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties
• The purchase and installation of machinery, equipment, supplies, and inventory
• Debt refinancing when such refinancing improves cash flow and creates jobs
• Business and industrial acquisitions when the loan will maintain business operations and create or save jobs

Borrowers may be:

• For-profit businesses
• Nonprofit organizations and cooperatives
• Federally recognized tribes
• Public bodies
• Individuals engaged in or proposing to engage in a business

The program funds projects within eligible areas, which include:

• Rural areas not in a city or town with a population of more than 50,000 inhabitants
• The borrower's headquarters may be based within a larger city as long as the project is located in an eligible rural area.
• The lender may be located anywhere in the U.S.
• Projects may be funded in rural and urban areas under the Local and Regional Food System Initiative.

Terms, fees, and underwriting requirements may be found on the program website.

Lenders should visit the streamlined OneRD Guarantee Loan Initiative website for detailed application information. (Lender Guide)

Interested borrowers should inquire about the program with their lender or contact the state office to request information on local lenders.