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First National Bank of Oklahoma recently closed a $2,300,000 USDA Business & Industry (B&I) Guaranteed Loan for the refinancing of a portfolio of newly constructed cell towers across Minnesota, Iowa, North Dakota, Louisiana, and Texas.
This financing solution enabled the borrower—one of the largest privately held cell tower developers in the country—to refinance their construction line of credit, thereby unlocking capital for continued tower development under a large-scale build-to-suit agreement with multiple major cellular carriers.
Purpose of the Loan
The USDA B&I loan proceeds were used to:
- Refinance the borrower’s short-term construction debt
- Improve liquidity and free up credit capacity for future tower builds
- Support rural internet and cellular network access in underserved areas
This transaction is an example of how the USDA B&I Loan Guarantee Program supports infrastructure growth in rural America—extending far beyond agriculture to include broadband, cellular infrastructure, and communications.
Loan Details
- Loan Type: USDA Business & Industry Guaranteed Loan
- Amount: $2,300,000
- Use of Funds: Refinance construction line of credit
- Term/Amortization: 25-year term, 25-year amortization
- Collateral: 1st lien title insured leasehold mortgage position on a portfolio of cell towers
- States: Minnesota, Iowa, North Dakota, Louisiana, Texas
Strategic Benefits
- Rural Economic Development
This USDA loan provided long term financing for a portfolio of rural cell towers. This infrastructure, located in less densely populated areas where cellular coverage is often sparse, will bring new connectivity to these underserved regions, supporting economic development and broadband equity. - Stabilized Long-Term Financing
Cell towers often experience lower initial yields because they begin operations with a single tenant. Over time, new tenants will be added to the tower, with nearly all incremental rental income flowing to the bottom line since most cell tower expenses are fixed (taxes, insurance, utilities, ground rent, etc). The USDA B&I loan’s long-term amortization offers developers the cash flow needed to reach optimal occupancy without short-term financial pressure. - Support for Build-to-Suit Contracts
Under a build-to-suit model, developers agree to construct 50–100+ towers for anchor tenants under pre-negotiated lease terms. The USDA financing helped the borrower free up capacity on its construction line of credit so it could continue leveraging the line to build new towers and fulfill its contract.
Why USDA B&I?
The USDA Business & Industry Guaranteed Loan Program is designed to promote economic development and improve quality of life in rural communities. Cell towers are important infrastructure for both objectives, as reliable cell and internet service improves employment prospects and connectivity for rural residents.
A Partner in Rural Progress
At First National Bank of Oklahoma, we’re proud to support rural infrastructure investments. This transaction reflects our commitment to creative, community-focused lending solutions through programs like the USDA B&I guaranteed loan program.
If your business is considering a similar project in a rural area—or is facing a short-term financing need that could benefit from long-term USDA-supported stability—we’re here to help.
Contact us today to learn how our experienced lending team can tailor a USDA B&I loan solution to your business goals.
First National Bank of Oklahoma
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Visit fnbok.bank for more information.