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First National Bank of Oklahoma recently closed on an $11,450,000 USDA Business & Industry (B&I) Guaranteed Loan for the acquisition of an industrial facility located along the fast-growing I-20 corridor east of Birmingham.
The borrower secured the property through an off-market transaction and plans to make targeted improvements to enhance warehousing efficiency and improve its delivery capabilities. This project marks our second financing with the same borrower group, a multi-generational logistics team building a high-performing network of trucking, warehousing, and brokerage operations throughout the Southeast.
Purpose of the Loan
This USDA B&I loan provided the Borrower with the capital needed to:
- Acquire a well-located industrial building in a competitive logistics market
- Improve its operational capabilities through facility upgrades
- Continue to build out a strategic logistics footprint to benefit its regional manufacturing clients
Loan Details
- Loan Type: USDA Business & Industry Guaranteed Loan
- Amount: $11,450,000
- Use of Funds: Industrial building acquisition
- Term/Amortization: 25-year term, 25-year amortization
- Location: Alabama
Strategic Benefits
- Leveraging an Off-Market Opportunity
By working with an experienced lender, the Borrower was able to move quickly through the USDA application process to close on an off-market acquisition. This acquisition will serve as a major hub for the borrowers continued growth throughout the southeast. - Backing a Growing Logistics Platform
The Borrower is actively assembling a portfolio of logistics properties across the Southeast to serve the needs of high-growth, manufacturing-driven markets. Their long-term strategy includes integrated trucking, storage, and brokerage capabilities, and USDA loans have played a key role in supporting their expansion. - Maximizing Cash Flow Through Long-Term Financing
The USDA B&I loan structure allowed for 25-year amortization, giving the Borrower the ability to finance at an attractive advance rate while preserving cash flow. This long horizon provides the flexibility needed to invest in facility improvements and scale operations over time.
Why USDA B&I?
The USDA Business & Industry Guaranteed Loan Program is a smart tool for rural and semi-rural businesses seeking competitive financing. In this case, it offered:
- High leverage with favorable loan-to-cost ratios
- Extended terms and amortization to support long-term growth
- Reduced equity requirements compared to conventional financing
Building Together
At First National Bank of Oklahoma, we value repeat partnerships with forward-thinking clients. Their vision for scalable logistics infrastructure aligns with our mission to support economic development in underserved and high-growth markets.
If your business is expanding through acquisition or development in a rural area, our team is ready to help structure a USDA B&I loan that works for you. Not sure if your project is located in a rural area? Check out our mapping tool here.
Contact us today to explore how First National Bank of Oklahoma can support your next strategic move.
First National Bank of Oklahoma
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Visit fnbok.bank to learn more about USDA loan programs.