Business and Industry Guaranteed 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.

Active 10.768 Rural Business-Cooperative Service, Department of Agriculture F - Guaranteed/Insured Loans Not applicable. Consolidated Farm and Rural Development Act, Section 310B, 7 U.S.C 1932, Section 310B, Public Law -92-419, 7 U.S.C. 1932 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. N/A 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. 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 Applications typically take 60 days to approve. Denial for program assistance is appealable. Not applicable. 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. 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. Performance Reports: 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. 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: 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. Regional Agency Offices: http://www.rd.usda.gov/contact-us/state-offices Program Processing Branch
U.S. Department of Agriculture
Rural Business-Cooperative Service
1400 Independence Ave SW
Washington, DC 20250-3224 US
Will.Dobson@usda.gov
Phone: 202-690-4730 http://www.rd.usda.gov/programs-services/business-industry-loan-guarantees 12-4155-0-3-452 (Guaranteed/Insured Loans) FY 22$1,400,283,290.00; FY 23 est $1,871,243,590.00; FY 24 est $2,000,000,000.00; FY 21$2,021,876,370.00; FY 20$1,578,000,000.00; FY 19$1,400,000,000.00; FY 18$1,200,000,000.00; FY 17$892,244,000.00; FY 16$920,000,000.00; - No Data Available. The Business and Industry Guaranteed Loan Program regulations has been updated and published.