USDA Business & Industry (B&I) Guaranteed Loan Program
Program Overview
The USDA B&I program bolsters the existing private credit market by providing a government guarantee on loans for rural businesses. Designed to create jobs and stimulate economic growth, this program allows lenders to offer favorable terms to essential projects, significantly reducing lender risk while expanding borrower access to capital.
Eligible uses include (but are not limited to):
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Business conversion, enlargement, repair, modernization, or development.
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The purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties.
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The purchase and installation of machinery and equipment, supplies or inventory.
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Debt refinancing when such refinancing improves cash flow and creates jobs.
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Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.
Eligible Projects & Businesses
- Manufacturing and Industrial Facilities
- Service providers in rural sectors
- Wholesale and Distribution centers
- Commercial real estate & Infrastructure
- Renewable Energy & Efficiency upgrades
The loan guarantee percentage is published annually in a Federal Register notice. For B&I loans approved in Fiscal Year 2026 the following guarantees apply:
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Applications requesting less than $5,000,000 will receive an 85 percent guarantee
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Applications requesting $5,000,000 or more will receive an 80 percent guarantee
Eligibility & Requirements
Borrower Eligibility
Location & Address Requirements
Eligible borrowers include for-profit businesses, non-profits, cooperatives, and federally recognized tribes. The business must be located in a rural area, generally defined as an area with a population of 50,000 or less.
Projects must be physically located in an eligible rural area to qualify for the B&I program. This ensures that the economic benefits of the loan reach the communities that need them most. Check address eligibility here.
Our USDA Lending Process
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Initial Consultation
Pre-Qualification
Loan Structuring
Application Submission
We begin by understanding your rural business goals and assessing your project's eligibility for the USDA B&I program.
Our experts perform a preliminary review of your financials and the rural area requirements to ensure a strong USDA application.
We tailor the loan structure to meet USDA B&I guidelines, optimizing terms for conversion, development, or refinancing.
Our team prepares and submits a comprehensive USDA package, ensuring all regulatory and job creation metrics are met.
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Underwriting & Approval
Closing Preparation
Funding
Ongoing Support
The lender and USDA review the project. We manage communication to expedite the issuance of the Conditional Commitment.
We coordinate meticulously with all parties to satisfy all USDA conditions and clear the path for a smooth closing.
Upon final USDA review and issuance of the Loan Note Guarantee, funds are disbursed to fuel your rural economic growth.
SBP Lender Services remains your partner, assisting with USDA compliance and reporting throughout the loan's lifecycle.
Start Your SBA Loan Journey
Our experts are ready to guide you through the SBA lending process. Contact us today!
Support@sbplenderservices.com
Phone: 240-449-8948