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Direct Business and Industry Loans
Description:
The Business and Industry (B&I) Direct Loan Program provides loans to private parties, who cannot obtain credit elsewhere, and
to public bodies. This type of assistance is available in areas outside any city with a population of 50,000 or more and its
immediately adjacent urbanized/urbanizing area.
Loan Purposes:
Loans to private parties can be made for the purpose of improving, developing, or financing business and industry,
employment, and to improve the economic and environmental climate in rural communities, including pollution abatement and
control.
Who Is Eligible?
Virtually any legally organized entity, including cooperatives, corporations, partnerships, trusts or other entity organized and
operating on a profit or nonprofit basis, Indian Tribes or Federally-recognized Tribal groups, municipalities, counties, any
other political subdivisions of a State, or an individual. Loans are available to those who cannot obtain credit elsewhere and for
public bodies.
Other Criteria:
Collateral must be sufficient to protect the interest of the Government and usually includes personal and/or corporate
guarantees. The interest rate is now set at 9.5%.
FY 2003 Allocation
This program is not funded in FY '03.
Loan Amount:
The maximum aggregate B&I Direct Loan amount to any one borrower is $10 million.
Loan Maturity
Maximum maturities are 7 years for working capital, 15 years for machinery and equipment, and 30 years for real estate.
Timeframes for Turnaround
Loans are to be approved within 60 days after receipt of a complete application, subject to the availability of funds.
Where Do You Apply?
Individuals may contact their local Rural Development Area Office.
Please send any comments or suggestions to: craig.scroggs@ga.usda.gov
Last Updated : May 23, 2003