Special COVID-19 Funding:
USDA is making available up to $1 billion in loan guarantees to help rural businesses meet their working capital needs during the coronavirus pandemic. Business & Industry CARES Act Program
What does this program do?
- Federal or state-chartered banks.
- Savings and loans.
- Farm credit banks.
- Credit unions.
- For-profit businesses.
- Federally-recognized Tribes.
- Public bodies.
- Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence.
- Private-entity borrowers must demonstrate that loan funds will remain in the U.S. and the facility being financed will primarily create new or save existing jobs for rural U.S. residents.
- Rural areas outside of a city or town with a population of fewer than 50,000 people.
- The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area.
- The lender may be located anywhere in the United States.
- Projects may be funded in rural and urban areas under the Local and Regional Food System Initiative. Check eligible addresses for Business Programs.
- Business conversion, enlargement, repair, modernization or development.
- The purchase and development of land, easements, rights-of-way, buildings or facilities.
- The purchase of equipment, leasehold improvements, machinery, supplies or inventory.
- Debt refinancing when refinancing improves cash flow and creates jobs.
- Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.
- Lines of credit.
- Owner-occupied and rental housing.
- Golf courses.
- Racetracks or gambling facilities.
- Churches, church-controlled organizations or charitable organizations.
- Fraternal organizations.
- Lending, investment and insurance companies.
- Projects involving more than $1 million and the relocation of 50 or more jobs.
- Agricultural production, with certain exceptions (1).
- Distribution or payment to a beneficiary of the borrower or an individual or entity that will retain an ownership interest in the borrower.
Maximum Discounted Value
Real Estate: 80 percent of fair market value.
Equipment: 70 percent of fair market value.
Inventory: 60 percent of book value (raw inventory and finished goods only).
Accounts Receivable: 60 percent of book value (less than 90 days).
- 80 percent for loans up to $5 million.
- 70 percent for loans between $5 and $10 million.
- 60 percent for loans exceeding $10 million, up to $25 million maximum.
- Maximum term on real estate is 30 years.
- Maximum term on machinery and equipment is for its useful life or 15 years, whichever is less.
- Maximum term on working capital is not to exceed 7 years. Loans must be fully amortized; balloon payments are not permitted.
- Interest-only payments may be scheduled in the first 3 years.
- Interest rates are negotiated between the lender and borrower, subject to Agency review.
- Rates may be fixed or variable.
- Variable interest rates may not be adjusted more often than quarterly.
- There is an initial guarantee fee, currently 3 percent of the guaranteed amount.
- There is an annual renewal fee, currently 0.5 percent of outstanding principal (2).
- Reasonable and customary fees are negotiated between the borrower and lender.
- The proposed operation must have a realistic repayment ability.
- New enterprises may be asked to obtain a feasibility study by a recognized independent consultant.
- The business and its owners must have a good credit history.
- At loan closing or project completion, the business must have a tangible balance sheet equity position of:
- 10 percent or more for existing businesses, or
- 20 percent or more for new businesses.
- Key person life insurance may be required and the amount negotiated. A decreasing term life insurance is acceptable.
- Personal and corporate guarantees are normally required from all proprietors, partners (except limited partners) and major shareholders (all those with a 20 percent or greater interest).
- Applications are accepted from lenders through USDA local offices year-round.
- Interested borrowers should inquire about the program with their lender.
- Lenders interested in participating in this program should contact the USDA Rural Development Business Programs Director in the state where the project is located.
- Loan Processing – Code of Federal Regulations, 7 CFR 4279-A and B.
- Loan Servicing – Code of Federal Regulations, 7 CFR 4287-B.
- This program is authorized by the Consolidated Farm and Rural Development Act.
NOTE: If state-specific forms are not shown above, please refer to the application materials listed below to start the process of applying. Please ensure that your state is selected in the drop down menu above to find the State Office contact information for this program and speak to a Business Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in the process.
- Frequently Asked Questions (pdf)
- B&I Guaranteed Loan Factsheet (pdf)
- B&I Guaranteed Loan Secondary Market Factsheet (pdf)
- B&I Program Eligibility (PDF)
- B&I Loan Making Requirements (PDF)
- B&I Application Submission and Loan Closing (PDF)
- B&I Servicing Training (PDF)
- Guaranteed Loan Making - B&I General (pdf)
- Guaranteed Loan Making - B&I Loans (pdf)
- Servicing B&I Guaranteed Loans (pdf)
- AD-3030 Felony Conviction and Tax Delinquent Status for Corporate Applicants (pdf)
- RD4279-1 Application for Loan Guarantee (pdf)
- RD4279-2 Certification of Non-Relocation and Market and Capacity Information Report (pdf)
- RD4279-4 Lender’s Agreement (pdf)
- RD 4279-14 Unconditional Guarantee (pdf)
- RD1980-41 Guaranteed Loan Status Report (pdf)
- RD1980-44 Guaranteed Loan Borrower Default Status (pdf)
Interest rates are negotiated between the lender and borrower, subject to Agency review. They may be fixed or variable, and variable interest rates may not be adjusted more often than quarterly.
There are no engineering requirements at the national level, however, some states have additional requirements.
Guidance for Florida B&I Guaranteed Loans
The Florida Business and Industry Lender's Guide can be found here.
There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.
There are currently no events scheduled.
Most loans and grants are originated and/or serviced in the Area Office. Please contact the Area Office that services your County or Town. See our: Florida County Map.
Please contact the USVI St. Croix Office for all of the USVI.
CRESTVIEW AREA OFFICE
3070 Adora Teal Way, Suite C
Crestview, Florida 32539
Telephone: (850) 682-2416
Fax: (855) 473-8755
Counties Served: Escambia, Holmes, Okaloosa, Santa Rosa, and Walton
MARIANNA AREA OFFICE
2741 Penn Avenue, Suite 5
Marianna, Florida 32448
Telephone: (850) 526-2610
Fax: (855) 474-6969
Counties Served: Bay, Calhoun, Franklin, Gadsden, Gulf, Jackson, Jefferson, Leon, Liberty, Wakulla, and Washington
LAKE CITY AREA OFFICE
971 W Duval St, Suite 190
Lake City, Florida 32055-3736
Phone: (386) 719-5590
Fax: (855) 474-6983
Counties Served: Baker, Bradford, Clay, Columbia, Duval, Hamilton, Lafayette, Madison, Nassau, Suwannee, St. Johns, Taylor, and Union.
OCALA AREA OFFICE
2441 NE 3rd Street, Suite 204-1
Ocala, Florida 34470
Telephone: (352) 732-7534
Fax: (855) 474-6990
Counties Served: Alachua, Citrus, Dixie, Flagler, Gilchrist, Lake, Levy, Marion, Putnam, Seminole, Sumter, and Volusia
CHAMPIONS GATE AREA OFFICE
8390 Champions Gate Blvd, Ste 210
Champions Gate, FL 33896
Telephone: (863) 420-4833
Fax numbers (855) 474-8230
Counties Served: Brevard, Hernando, Hillsborough, Indian River, Orange, Osceola, Pasco, Pinellas, and Polk
ROYAL PALM BEACH AREA OFFICE **(see Sub Office information)
420 South State Road 7, Suite 166
Royal Palm Beach, Florida 33414-4306
Phone: (561) 792-2727
Fax: (855) 475-4827
**N. Ft. Myers (Sub Office of Royal Palm Beach)
3434 Hancock Bridge Pkwy., Suite 209-A
N. Ft. Myers, Florida 33903-7005
Telephone: (239) 997-7331
FAX: (855) 475-8043
Counties Served from Royal Palm Beach and North Fort Myers: Broward, Dade, Glades, Hendry, Highlands, Martin, Monroe, Okeechobee, Palm Beach, St. Lucie, Charlotte, Collier, DeSoto, Hardee, Lee, Manatee, and Sarasota.
ST. CROIX US Virgin Islands AREA OFFICE
4401 Sion Farm, Ste. #2
Christiansted, St. Croix, Virgin Islands 00820
Phone: (340) 773-9146
FAX: (855) 475-6940
Locations Served: St. Croix, St. John & St. Thomas, VI