USDA B&I — Rural business development
USDA B&I Loans — up to $25 million.
Capital for businesses in rural America — manufacturing, service, retail, agriculture-related. Projects in areas with populations under 50,000 qualify. USDA guarantees up to 80% of the loan to participating lenders.
Why Choose USDA B&I?
The best financing option for businesses creating jobs in rural communities
- Rural area requirement
- Eligible projects are in areas with populations under 50,000. The USDA Property Eligibility Map confirms whether a specific location qualifies.
- Up to $25 million per project
- Substantially larger than the SBA 7(a) cap, with even higher limits available for projects meeting specific public-priority criteria.
- Job creation priority
- Projects that create or save rural jobs receive priority in scoring, especially at a cost of $40,000 or less per job.
- Broad industry eligibility
- Manufacturing, service, retail, agriculture-related businesses, and more. Owner-occupied real estate, acquisitions, equipment, and working capital all qualify.
- USDA guarantee up to 80%
- The USDA guarantees a portion of the loan to the participating lender, reducing risk and making approval more attainable than purely conventional financing.
- Long repayment terms
- Up to 30 years for real estate, 15 years for equipment, 7 years for working capital. Fully amortized.
Is Your Business Eligible?
USDA B&I loans are designed to strengthen rural economies through business development
Location Requirements
- Located in rural areas (population under 50,000)
- Priority to areas with population under 25,000
- Some exceptions for larger communities
- Check USDA eligibility maps for confirmation
Business Requirements
- For-profit business or cooperative
- Demonstrate ability to repay the loan
- Create or save rural jobs
- Have adequate collateral
- Good credit history
Priority Consideration
Projects receive priority if they save/create jobs at a cost of $40,000 or less per job, are located in areas of high unemployment, or support value-added agriculture.
Eligible Uses of Funds
USDA B&I loans offer flexibility for various business needs
Real Estate
- Purchase land & buildings
- Construction projects
- Leasehold improvements
Equipment
- Machinery purchase
- Technology upgrades
- Vehicle fleets
Working Capital
- Inventory financing
- Operating expenses
- Marketing initiatives
Business Development
- Debt refinancing
- Business acquisition
- Expansion projects
Industries We Serve
Supporting diverse businesses that strengthen rural economies
Agriculture & Food
Food processing, value-added agriculture, farm supply businesses
Manufacturing
Production facilities, assembly operations, light industrial
Service Industries
Healthcare, hospitality, retail, professional services
Rural Infrastructure
Telecommunications, utilities, transportation services
Community Services
Childcare, elder care, educational facilities
Tourism & Recreation
Hotels, restaurants, outdoor recreation businesses
Simple Application Process
From application to funding in 60-90 days
Initial Review
Confirm eligibility and project scope
1-3 days
Documentation
Prepare business plan and financials
1-2 weeks
Lender & USDA Review
Credit analysis and approval process
4-6 weeks
Closing
Final approval and fund disbursement
2-3 weeks
Frequently Asked Questions
How do I know if my area is considered rural?
Generally, areas with populations under 50,000 qualify. Use the USDA Property Eligibility Map online or contact us for verification.
What percentage does USDA guarantee?
USDA typically guarantees 80% of the loan amount, but can go up to 90% for loans under $5 million in certain circumstances.
Can startups qualify for USDA B&I loans?
Yes, but startups face additional requirements including stronger business plans, industry experience, and potentially higher equity requirements.
What collateral is required?
Typically all business assets are pledged. Personal guarantees are required from owners with 20% or more ownership.
How long are the loan terms?
Up to 30 years for real estate, 15 years for machinery and equipment, and 7 years for working capital.
Ready to Grow Your Rural Business?
Access the capital you need to create jobs and strengthen your rural community.