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At FNBOK we have an expertise in two commonly used Guaranteed Loan Products, SBA 504 and USDA Business & Industry (B&I), each serving different Borrower profiles and project types. These products provide a Borrower with longer-term financing, service larger loans, and allow for creative structuring. See the below table to help identify which product might best fit your project and learn more about the specific use-cases:
| Loan Type | SBA 504 Loan |
USDA B&I Loan |
| Best For | Owner-occupied CRE & major equipment | Rural businesses needing flexible capital |
| Max Loan Size | $5MM | Up to $25MM |
| Structure | 50% bank / 40% CDC / 10% equity | Lender loan with USDA guarantee up to 80% |
| Term Length | 10, 20, or 25-year fixed | Up to 30 years (real estate), 15 years (equipment), 7 years (working capital) |
| Guarantee Type | 75% | 80% |
| Uses | Fixed assets only—commercial real estate & equipment | Working capital, real estate, equipment, acquisitions, refinance |
| Equity Requirement | Typically 10% | 10–20% |
| Geography | Nationwide eligibility | Must be in USDA-defined rural area; |
| Occupancy Rules | 51% for existing businesses / 60% new businesses | No occupancy requirement |
SBA 504 Loan — Highlights
- Low equity requirement (often 10%)
- Long fixed-rate amortization increases affordability
- CDC takes second position, lowering Lender risk
- Ideal for real estate-heavy expansion deals
- Great fit for manufacturers and owner-occupied properties
USDA B&I Loan — Highlights
- High government guarantee (up to 80%) strengthens lender security
- Supports large rural projects up to $25MM
- Extremely flexible use of proceeds (WC + RE + equipment)
- Long amortizations reduce payment burden and increases cash-flow
- Ideal for rural developments, acquisitions, and job-creating projects
If you need a tailored recommendation, please don’t hesitate to reach out to ensure your deal is structured properly from day one. We have the team and expertise at FNBOK to get your project over the finish line.