Steve Thompson (202) 720-2446
sathomps@rdmail.rural.usda.gov
Dan Campbell (202) 720-6483
dan.campbell@usda.gov

WASHINGTON, Sept. 7, 2000--Rural businesses should soon have an easier time getting credit to expand or start operations thanks to a cooperative agreement announced today by Agriculture Under Secretary Jill Long Thompson and the National Association of Government Guaranteed Lenders (NAGGL).

"This is an exciting new step in USDA Rural Development's efforts to help rural America grow through better credit opportunities," said Long Thompson. "This agreement will bring lenders and USDA employees face to face, to learn from each other how better to serve rural business needs."

The agreement will provide a forum for NAGGL members to provide feedback and suggestions for improving the delivery of Rural Development's Business and Industry (B&I) Guaranteed Loan program. The B&I program guarantees repayment of up to 90 percent of loans made through private lenders. This allows the lenders to offer more loans at more favorable terms to qualifying rural business borrowers. Guarantees are available for up to $25 million.

Under the agreement, Rural Development and NAGGL will hold training sessions to better acquaint NAGGL members with USDA guarantee programs and help build working relationships between lenders and USDA personnel. In addition, NAGGL will hold credit training sessions for Rural Development employees. Rural Development and NAGGL also agree to work together on ways to make it easier for lenders to participate in the guarantee program, and streamline guarantee application procedures.

Further information on the B&I Guaranteed Loan program is available on USDA Rural Development's website, at http://www.rurdev.usda.gov/rbs/busp/b&i_gar.htm.

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