USDA Rural Development Business and Industry Guaranteed Loan Program
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EmailRural Development Business and Industry Guaranteed Loan Program
How it Works
This loan program bolsters the existing private credit structure through the guaranteeing of loans for rural businesses, allowing private lenders to extend more credit than they would typically be able to, and improves the economic health of rural communities.
Funding Focuses On
- Business conversion, enlargement, repair, modernization, or development
- Purchase and development of land, easements, rights of way, buildings, or facilities
- Purchase of equipment, leasehold improvements, machinery, supplies, or inventory
- Debt refinancing when new jobs will be created and other conditions are met
- Business and industrial acquisitions when the loan will keep the business from closing and/or save or create jobs.
This means that a prospective food hub or food hub-related business would be an ideal candidate for this grant.
Funding Limit
Loans may be $5,000,000 to $25,000,000.
Qualifications
Cooperatives, nonprofit organizations, corporations, partnerships, or other legal entities; Indian tribes; public bodies; or individuals. Eligible areas are:
- Any area other than a city or town with a population greater than 50,000 inhabitants in the urbanized area of that city or town
- The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area
Financing Geographic Area
United States