USDA Rural Development
Special long term financing with lower monthly payments for qualifying rural businesses.
The rural reality is harsh but true: less capital is available for rural areas than urban metros. The entrepreneurs, developers, and job creators in these communities have long been at a capital disadvantage – until now. The USDA Rural Development Program is designed to strengthen the economics and bolster the quality of life in rural America.
The only problem? Few lenders know how to access it, and even fewer know how to leverage the unique program benefits to create better outcomes for their Borrowers. We do.
A number of years ago, the USDA crafted a novel solution to the capital challenges experienced by rural employers and entrepreneurs. The department best known for its regulation and support of agriculture devised a series of plans to strengthen the economies and bolster the quality of life in rural areas. The USDA addressed the underlying concerns of traditional lenders by participating as a guarantor and ultimately easing access to capital in rural markets.
Today, USDA Rural Development guarantees a $234 billion portfolio of loans – a massive portfolio few are aware of. The program comprises five loan programs, including Rural Energy for America, Community Facilities, Business & Industry, and Food Supply Chain loan programs.
|Qualifying Businesses||Max Population||Max Loan Amount||Annual USDA Guarantee Fee|
|Business & Industry||Small to Mid-Sized Rural Businesses||50,000||$25 MM||Yes|
|Community Facilities||Colleges, Schools, Hospitals, Parks, Daycare, Assisted Living, etc.||50,000||$100 MM||Yes|
|Rural Energy for America||Solar/Wind/Energy Developer, Anaerobic Digesters||50,000||$25 MM||Yes|
|Food Supply Chain||Food Packagers, Processors, Transporters, etc.||No Limit||$40 MM||No|
The vast majority of the United States is eligible for these special financings. First National Bank of Oklahoma originates USDA Rural Development loans across the United States.Does my Location Qualify?
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