USDA Business & Industry (B&I) Loan Program?

The USDA’s Business & Industry Loan Program is similar to the SBA loan programs, but tailored for rural businesses where there may not have access to a pool of conventional lenders in the area.

Key Features:

• Loan amounts up to $25 million

• Loan terms of up to 30 years for real estate

• Interest rates are negotiated with lenders but generally competitive

• Up to 80% loan-to-value (LTV) financing for real estate purchases or renovations

• Must create or preserve jobs in eligible rural areas

• Can finance:

  • Purchase or construction of commercial real estate

  • Business acquisitions

  • Renovations and expansions

  • Equipment purchases

Property Requirements:

• Must be in a rural area (population < 50,000)

• Can include hotels, office buildings, industrial properties, retail, medical office, etc., if they house an operating business

Best For:

• Business owners or developers looking to buy or renovate commercial property in rural locations

• Alternative to SBA 7(a) or 504 loans when the property or borrower is rural-based