Since 2009, USDA has invested more than $5 billion to support small businesses, create jobs, and promote economic opportunity for those who live, work, and raise their families in rural Oklahoma. Through Business and Industry Loan Guarantees, businesses and lenders can work together to find solutions to financing needs.
Are Applications Being Accepted? Yes.
Program Fact Sheet: PDF
- 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.
Forms & Resources
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 dropdown 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.
Preliminary Actions Required
To complete an application for this program, you must be pre-registered with the System for Award Management (SAM) and also have a Data Universal Number System (DUNS) number. Neither of these applications cost money, but they can take time so be sure to get this taken care of right away. If you are already registered with these systems, you do not need to do it again.
- 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)
We alerted our vendor community to third-party companies offering to help you update information contained within the System for Award Management (www.SAM.gov) website, for a fee. Your SAM registration contains sensitive business information, including your banking information and other sensitive information, so your login and password should not be shared with anyone outside your company. As a reminder, the use of the System for Award Management website is free to use and update, and the Commodity Procurement Staff does not see a reason to pay anyone to provide that service.
Secondly, we have just become aware of a couple of scam emails that offer to “help companies start the renewal process online” or suggest that “Your Federal Profile is Almost Complete. Immediate Action Required!” In both cases, your free access to SAM.gov will resolve any questions you may have regarding your registration in SAM.gov. As you know, SAM.gov requires an annual recertification and sends out email reminders prior to the expiration, and again, updates should be handled by company employees. Furthermore, if your registration is not complete, you may login to SAM.gov to make that determination for yourself.
Please remember that SAM.gov is not affiliated with the USDA and is a government-wide website not maintained by our Agency. If you have any questions regarding access or how to use SAM, please contact their help desk at 866-606-8220, option #1.
There are no engineering requirements at the national level, however, some states have additional requirements.
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.
Information for this program can be obtained by
contacting local banks and business lenders
or by contacting the Rural Development State Office