Business & Industry Guaranteed Loan
The Business and Industry (B&I) Guaranteed Loan program provides up to an 80% guarantee on traditional lender
loans to businesses. Benefits to businesses include increased flexibility on rates and terms of local lender loans.
By utilizing the secondary market, banks can offer long term fixed rate terms.
Businesses may use loan proceeds for working capital, machinery and equipment, buildings and real estate, and for certain
types of debt refinancing.
B&I guaranteed loans are available to businesses located in areas outside any city with a population of 50,000 or more
and its immediately adjacent urbanized or urbanizing area with the exception of Great Falls, which is an eligible area.
Assistance is available to virtually any legally organized entity - including corporations, partnerships, cooperatives,
Federally-recognized Indian Tribes, and individuals.
The maximum loan amount is $10 million. However, loans of up to $25 million can be guaranteed with prior approval from the
National Business Programs Administrator. Businesses in operation less than 3 years must provide a minimum of 20% of tangible
book equity. Existing businesses must provide 10%.
Here is a program comparison (Adobe™ PDF) between the REAP program and
the B&I Guarantee program.
For more information on this or any program offered by Rural Development, please contact your nearest Area Office.
