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Housing
Business and Cooperatives
Business and Industry Loan Guarantee Program
Provides loan guarantees for business and industrial development to create
and maintain employment, expand, and to improve economic climate. Projects
include business/industrial acquisition, construction, enlargement,
modernization, real estate, buildings, equipment, working capital and
refinancing.
Eligibility:
- Eligible applicants include individuals, partnerships, non profits,
corporations, LLCs, Native American tribes, cooperatives, etc.
Guaranteed Loan Terms and Conditions:
- The interest rate is negotiated between the applicant and the lender and
can be either fixed or variable.
- The maximum term of a loan for real estate is 30 years, equipment 15
years, and for working capital seven years.
- The minimum tangible net worth requirements are 10 percent for existing
businesses and 20 percent for new businesses. A minimum of 25 percent
equity for biobased projects.
- Loan guarantees are issued by USDA Rural Development on loans originated
by commercial lenders to applicants/businesses.
- Program availability is contingent upon fiscal year funding.
- Eligible areas include unincorporated rural areas, cities, and towns
with populations of less than 50,000.
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