The USDA Business and Industry (B&I) Guaranteed Loan Program is a loan guarantee program designed to assist credit-worthy rural businesses by obtaining the necessary funding for most legal business purposes.
For this article, our banking and lending experts at FLCBank wanted to share some things you should know about USDA business loans. We hope this article helps you determine if a USDA business loan is right for you. If you are not sure, our lending specialists would be happy to speak with you and answer any questions.
- A USDA business loan is designed to help agricultural and rural business owners.
- USDA business loans are an easy way for rural businesses to receive access to capital.
- To qualify for a USDA loan, your business/project needs meet certain geographic and population requirements.
- The type of businesses that qualify for a USDA business loan includes for-profit businesses, non-profits, public bodies, cooperatives, individuals, and federally recognized tribes.
- As an individual, you must be a U.S. citizen or live in the United States with legal status to be eligible for this loan.
- If the loans are for a private entity, you must prove that the money will stay in the United States and used to create or save jobs for Americans and U.S. residents.
- USDA business loans from $200,000 to $5 million in amount and the average loan size is about $3 million.
- If you need a large loan, loans up to $10 million are eligible for a USDA guarantee, but won’t be approved without an exception by the Administrator.
- There are maximum term lengths on the loan depending on how you plan on spending it.
- There is a limited supply of USDA loans, which means the process to get one is competitive as the money runs out.
- USDA loans can only be used on specific expenses. If you need funds for any of the following projects or expenses, the following are not applicable:
- 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
- Distribution or payment to a beneficiary of the borrower or an individual or entity that will retain an ownership interest in the borrower
- Lines of credit
- Owner-occupied housing
- Golf courses
- Racetracks or gambling facilities
- Churches, church-controlled organizations, or charitable organizations
- USDA business loans require collateral and personal guarantees.
- To qualify and apply for a USDA business loan, you may be asked to provide a balance sheet with cash flow projections, business credit reports, a comprehensive business plan, a study conducted by an independent consultant, a P&L statement, a record of the numbers of jobs your business have created or saved, a list of the average wages of your employees, personal credit reports and resumes from all owners, and a real estate appraisal.
Looking to Apply for a USDA Business Loan in Florida?
At FLCBank, we help business owners with the financing and growth of their business from the start. Our team of banking experts at FLCBank will help you find the right financing solution for your business.
If you are looking for a large loan and believe you are eligible for a USDA business loan, our lending experts can help you decide if a USDA business loan is right for you and your company. We know everything required and needed to apply for a USDA business loan and we will help you through the application process every step of the way if you are eligible.
FLCBank can help you secure the critical funds and can offer financing solutions for businesses or municipalities located in rural areas.
Learn more about these types of loans on our USDA business loans page.
FLCBank is a leader in the banking industry focusing on solutions for the financial well-being of businesses and their owners. We are a nationally chartered bank headquartered in Jacksonville, Florida with full-service branches located in Jacksonville, Gainesville, Orlando, and Tampa Bay.
For more information, visit our small business loans page or call us at 8003183159 with any questions or to determine your USDA business loan eligibility.