Filing Preapplications for
 Business & Industry Loan Guarantees

Borrowers and lenders are encouraged to file preapplications and obtain Agency comments before completing an application. However, if you prefer, you may file a complete application as the first contact with the Agency. Neither preapplications nor applications will be accepted or processed unless a lender has agreed to finance the proposal.

Lenders may file preapplications by submitting the following to the Agency:

1. A letter signed by the borrower and lender containing the following:
   • Borrower's name, organization type, address, contact person, and federal tax identification and telephone numbers.
   • Amount of the loan request, percent of guarantee requested, and the proposed rates and terms
   • Name of the proposed lender, address, telephone number, contact person, and lender's Internal Revenue Service (IRS) identification number.
   • Brief description of the project, products, services provided, and availability of raw materials and supplies.
   • Type and number of jobs created or saved.
   • Amount of borrower's equity and a description of collateral, with estimated values, to be offered as security for the loan.
   • If a corporate borrower, the names and addresses of the borrower's parent, affiliates, and subsidiary firms, if any, and a description of the relationship.
     
2. If the proposed loan is larger than $1 million and more than 50 new jobs will be created you will also need to include a completed Form 4279-2, "Certification of Non-Relocation and Market Capacity Information Report." This form is used to request a Department of Labor review that can take up to 60 days to complete. The Department of Labor determines whether jobs will be relocated from one community to another and whether new capacity will be added in an industry already suffering from an excess of capacity. Both are prohibited uses of our program. Copies of Form 4279-2 in OmniForm fillable format are available on the USDA eForm website. The OmniForm software needed to use these forms is also available through that website by selecting the Helpful Links option. Paper copies forms are also available from Rural Development offices.
   
3. For existing businesses, a current balance sheet and a profit and loss statement not more than 90 days old and financial statements for the borrower and any parent, affiliates, and subsidiaries for at least the 3 most recent years.
   
4. For start-up businesses, a preliminary business plan must be provided.

Preapplications should be filed with the Rural Development Specialist covering the county where the business will be located.