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Over the course of a decade, the U.S. Department of Agriculture’s Business and Industry (B&I) Guaranteed Loan Program has transformed rural communities by unlocking capital, stimulating growth, and—most notably—creating or saving an estimated 750,000 jobs between 2012 and 2022. According to a 2025 economic assessment by Summit LLC, this cornerstone program not only brings private lenders to the table but delivers exceptional returns on government investment—at just $438 per job created.
At First National Bank of Oklahoma, we’re proud to connect rural businesses to essential capital through programs like the USDA B&I Loan Guarantee. Let’s explore how this program works, the scale of its impact, and what it means for the future of rural America.
What Is the USDA B&I Guaranteed Loan Program?
The USDA B&I Loan Program is designed to enhance the economic well-being of rural areas by improving access to credit. It does so by guaranteeing loans made by private lenders to eligible rural businesses. This backing reduces lender risk and allows borrowers to secure more favorable loan terms for projects that might otherwise be overlooked due to location or complexity.
Businesses can use the funds for:
- Acquiring or expanding a business
- Purchasing land, buildings, equipment, or inventory
- Refinancing existing debt to improve cash flow
- Developing infrastructure or working capital needs
Eligible borrowers include for-profit and non-profit entities, federally recognized Tribes, cooperatives, and public bodies operating in rural areas (defined as communities with populations under 50,000). Loans can be as large as $25 million with up to 80% of the loan guaranteed by USDA.
How Many Jobs Were Created?
The macroeconomic findings from Summit’s report are staggering. Using county-level employment and USDA investment data, researchers concluded that B&I investments from 2012–2022 created 757,800 jobs. The job creation was both immediate and sustained—roughly 200,000 jobs were added in the first year after investment, with over 550,000 more generated in the following three years.
A Cost-Efficient Investment
It’s not just the scale of job creation that stands out—it’s also the value. The total cost to the federal government for these jobs was approximately $331 million over the decade, which translates to just $438 per job created. For comparison, many federal jobs programs cost thousands—or even tens of thousands—per job. The B&I program offers a remarkably efficient return on public funds.
The Ripple Effect: Beyond Jobs
While job creation is a critical metric, the B&I program’s impact is even more far-reaching. According to Summit’s econometric analysis, counties receiving B&I investment experienced:
- Higher Earnings Per Worker: Within just a few years post-investment, workers in counties that received B&I funding earned more than those in similar counties that didn’t. This gap widened over time, indicating sustained economic uplift.
- Higher GDP Per Capita: Counties with B&I projects showed stronger GDP growth compared to their matched counterparts, suggesting that these investments had a multiplier effect on local economies.
- Increased State Tax Revenue: On a state level, a 1% increase in B&I investment led to a 0.55% increase in sales tax revenue over three years. In other words, the program helps boost public coffers as well.
Oklahoma’s Share in the Growth
Oklahoma ranks among the top ten states for B&I loan activity, with $665 million in total loan guarantees supporting 130 projects between 2015 and 2024. These funds have flowed into industries including manufacturing, healthcare, and energy—sectors vital to Oklahoma’s rural workforce.
At First National Bank of Oklahoma, we see firsthand how critical these funds are to local job creation and community prosperity. As a local lender, we are committed to helping businesses access B&I funds, ensuring that economic opportunity reaches every corner of our state.
Opportunity Zones and Rural Revitalization
The B&I Loan Program has also seen expanded reach into Opportunity Zones—economically distressed areas identified by the Tax Cuts and Jobs Act of 2017. Between 2018 and 2024, B&I investments in Opportunity Zone ZIP codes increased by nearly 60%, helping ensure job growth in the areas that need it most.
Flexibility Across Industries
One of the unique strengths of the B&I program is its flexibility. It spans over 90 industry subsectors and has been instrumental in industries such as:
- Food Processing and Agriculture: Including meatpacking plants, grain milling, and dairy production.
- Manufacturing and Industrial Equipment
- Hospitality and Tourism
- Healthcare and Elder Services
- Energy, Utilities, and Broadband Infrastructure
This breadth allows rural communities to pursue economic development based on their own strengths and priorities, rather than a one-size-fits-all strategy.
A Program Built for the Future
In 2025, the USDA allocated a record-high $3.5 billion to the B&I program, with a historically low subsidy rate of just 0.2%. That means for every $100 lent, the government only spends 20 cents—making this one of the most cost-effective economic development tools available.
Under the OneRD initiative, launched in 2021, the USDA also streamlined application processes and standardized program rules, making it even easier for businesses and banks to participate. This has helped drive strong participation and utilization rates, with 98.24% of available funds used in 2024—another record high.
How First National Bank of Oklahoma Can Help
As an approved USDA lender, First National Bank of Oklahoma is ready to help rural businesses tap into the power of B&I financing. Whether you’re seeking to expand operations, purchase equipment, or bring new jobs to your town, our team can help you determine eligibility, prepare your application, and guide you through the process.
Final Thoughts
The USDA Business and Industry Guaranteed Loan Program is more than a federal financing initiative—it’s a proven engine of economic opportunity, workforce development, and rural revitalization. With over 750,000 jobs created in just ten years, the program stands as a powerful example of what’s possible when public funds are used to unlock private potential.
If you’re ready to bring new growth to your rural business—or your rural community—First National Bank of Oklahoma is here to help.