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 (United States Department of Agriculture) B & I loans were set up in an effort to improve rural communities, by assisting in the creation of and saving jobs.   

The benefits with the USDA B and I 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 20 year schedules which is more common will small town local banks.  Also the B and I loans never have balloon clauses and can be less expensive than compareable SBA Loans.  

Underwriting Criteria for USDA B and I Loans

Eligible Borrowers:

• Any legal entity including individuals, public and private organizations and federally recognized Indian tribal groups.
• There is no size restriction on the business
  

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.  Because we only get paid when your loan closes, you can be assured that the source we work with are solid. Take advantage of our contacts and expertise. Get preapproved now by filling out the mini commercial loan application.

248 885-8797

 
Commercial mortgage training, fee agreements, spreadsheets, etc.