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Home > USDA Business Industry Loans
USDA Business and Industry Loans, B and I Loans
The USDA B & I Loans are still viable and are still funding. This is NOT a waste of your time.
The USDA B & I loans (United States Department of Agriculture, Business and Industry) were set up in an effort to improve rural communities, by providing capital to assist business in the creation of and saving jobs.
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USDA B &I Lender List
The Most Active and
Aggressive USDA and SBA
Banks in the Nation
USDA Lender List
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Securing financing in small towns is often a very difficult tasks as most national and regional banks will NOT lend to borrowers with commercial real estate located in communitiues with less than 50,000 people. This program fills that void.
The benefits with the USDA Business and Industry program are many. Higher leverage (now up to 90%), and relative flexible underwriting standards top the list. Loan amounts range from $500,000 to $10,000,000. B & I loans are normally amortized over 30 years, which can have a dramatic increase in cash-flow compared to a more typical 20 year schedule. Also the B and I loans never have balloon clauses and can be less expensive than compareable SBA business loans.
Underwriting Criteria for USDA B and I Loans
Eligible Borrowers:
Use of Proceeds:
- B&I Loans may involve acquisitions, construction, conversion, repair, modernization or debt refinance.
- Loan proceeds can be used for real estate acquisition and/or improvements, machinery, equipment, furniture, fixtures and working capital. Closing costs and guarantee fees are also eligible. Meaning you can roll the closing costs into the loan amount.
Terms
- All B&I loans are fully amortized with no balloons or call dates.
- Repayment terms are up to 30 years for real estate and improvements, up to 15 years (or useful life) for machinery, equipment, furniture and fixtures and up to 7 years for working capital.
- Rates are based on a spread over the Prime Rate. Rates vary depending on the specific strengths of the transaction.
Like all commercial real estate loans, the key is knowing which banks are really funding loans and which to not waste your time with. We have the established relationships and contacts with the best and most viable B and I lenders in the nation. You can be assured that the sources we work with are solid. (Note we are now offering of internal USDA B and I Lender Listfor sale). Take advantage of our contacts and expertise. Get preapproved now by filling out our mini Pre Approval form below.
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