The purpose of the Business and Industry loan program is to improve, develop or finance business, industry and employment and improve the economic and environmental climate in rural communities with a population of 50,000 or more and its immediate adjacent urbanized or urbanizing area by guaranteeing quality loans which will provide lasting community benefits.

Loans can be used for construction, renovation and development, to purchase land and buildings, machinery and equipment, pollution control and abatement, startup costs and working capital (not line of credit), and processing and marketing facilities. Loans cannot be used to pay off a creditor in excess of value of collateral, payment to owner, partner, stockholder or beneficiary of applicants who will retain equity in the business, projects exceeding $1 million and increase in direct employment of 50 or more which results in transfer of employment from one area to another or results in excess of production of goods or services in the area, transfer of ownership of a business (except certain cases), assistance to government employees and military personnel owning 20 percent or more of the business or any illegal business activity.

Eligible borrowers include profit and nonprofit corporations, cooperatives and trusts, individuals, municipality, county or other political subdivisions, and federally recognized Indian tribal groups dealing in manufacturing, retail, wholesale or services. Ineligible business types include owner occupied housing, race tracks, golf courses, lending/investment institutions, insurance companies, charitable institutions, church controlled organizations, fraternal organizations, and business establishments when more than 10 percent of annual gross revenue is from gambling activities.

For more information about the program, please contact the  USDA Rural Development Area Office nearest you.