Business and Industry Loans
The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.
General information about this opportunity
Last Known Status
Rural Business-Cooperative Service, Department of Agriculture
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
Consolidated Farm and Rural Development Act, Section 310B, 7 U.S.C 1932, Section 310B, Public Law -92-419, 7 U.S.C. 1932
Who is eligible to apply/benefit from this assistance?
A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual.
A complete application containing such items as credit reports, financial statements, and appraisals are required as part of the application. This program is excluded from coverage under OMB Circular No. A-87.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Complete the requirements of RD Instruction 4279-B, section 4279.161(b).
Applications are funded on a first-come first served basis according to priority points procedures outlined in RD Instruction 4279-B, section 4279.155.
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
Applications typically take 60 days to approve.
Denial for program assistance is appealable.
How are proposals selected?
Businesses must demonstrate the ability to repay the loan. Existing businesses must have 10 percent tangible balance sheet equity and new businesses must have 20 percent tangible balance sheet equity.
How may assistance be used?
The program guarantees lenders’ loans for real estate, machinery and equipment, working capital, and debt refinancing. Guaranteed loans are the only type of assistance under this program. The guarantee is not intended for loans that are marginal or substandard. Assistance is limited to rural areas with populations of less than 50,000 inhabitants under most circumstances. Some loan purposes such as golf courses, gambling, and agricultural production are restricted or limited. The initial guarantee fee is 3% of the loan amount and the annual renewal fee is.5% of the outstanding guaranteed principal amount of the loan as of December 31st.
What are the requirements after being awarded this opportunity?
The Agency monitors the number of jobs created and/or saved by the borrower
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.
The lender is required to maintain a complete loan file no differently than it would keep for a borrower without a guarantee. This includes annual financial statements, correspondence, servicing actions, etc. The file may be inspected at the Agency's request.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching requirements are not applicable to this assistance listing.
This program has MOE requirements, see funding agency for further details. Additional Information:
Length and Time Phasing of Assistance
Assistance is available each fiscal year until September 30 or until expended, whichever occurs first. Lender’s loans are guaranteed so funds are not “released” by the Agency.
Who do I contact about this opportunity?
Regional or Local Office
Regional Agency Offices: http://www.rd.usda.gov/contact-us/state-offices
B&I Processing Branch
U.S. Department of Agriculture
Rural Business-Cooperative Service
1400 Independence Ave SW, Stop 3224
Washington, DC 20250-3224 US
(Guaranteed/Insured Loans) FY 18$1,200,000,000.00; FY 19 est $1,400,000,000.00; FY 20 Estimate Not Available FY 17$892,244,000.00; FY 16$920,000,000.00; - no approved President budget as of today
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
The Business and Industry Guaranteed Loan Program regulations has been updated and published.