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Business and Industry (B&I) Guaranteed Loan
The Business and Industry (B&I) Guaranteed Loan program (See Fact Sheet) 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 loans are normally available in rural areas, which include all areas other than cities & towns of more than 50,000 people
and the contiguous and adjacent and urbanized area of such cities and towns.
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 one year must provide a a proforma tangible balance sheet equity,
(appraisal surplus and subordinated debt will not be included as equity items) of 20%. Existing businesses must provide 10%.
Here is a program comparison (Adobe™ PDF) between the REAP program and
the B&I Guarantee program, as well as a list of regular program lenders.
For more information on this or any program offered by Rural Development, please contact your nearest Area Office.
- B&I Program Regulation (4279-B)
- B&I Program Regulation (4279-A)
- B&I Program Regulation (4287-B)
- B&I Application Checklist
- B&I Pre-Application Checklist
- B&I Program Application (Form RD 4279-1)
- B&I Application for Loan Guarantee (Form RD 4279-1-A)
- Environmental Form RD 1940-20
- FEMA Form 81-93
- Unconditional Guarantee (Form 4279-14)
- DUNS #
- Note: some documents require Adobe Reader