About Us

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USDA B&I Loan Guarantee Program

The USDA Business and Industry (B&I) Loan Guarantee Program was established to drive capital and create jobs in rural areas by providing loan guarantees for lenders in these areas.

Strengthening Communities

By guaranteeing a portion of the loan, the USDA reduces the lender's risk, making it more attractive for financial institutions to invest in rural projects or provide terms outside of their standard loan policy. This program isn’t just about financial transactions; it’s about strengthening communities. By encouraging investments in rural businesses, the program helps foster job creation, innovation, and economic diversity in rural areas. 

Key Goals of the Program

The USDA B&I Loan Guarantee Program was created with the following objectives:

Boost Rural Economies: Stimulate economic development by supporting the growth and sustainability of rural businesses.

Create Jobs: Increase employment opportunities in rural areas.

Support Diverse Industries: Enable businesses in various sectors—such as agriculture, manufacturing, hospitality, healthcare, and renewable energy—to thrive.

Improve Access to Capital: Encourage banks to lend by reducing their financial risk, opening doors to funding for projects that promote rural prosperity.

Biggest Benefits of the Program

The USDA B&I Loan Guarantee Program offers substantial benefits for both borrowers and lenders:

Borrowers
Lenders

For Borrowers:

  1. Improved Loan Terms: Borrowers often receive more favorable loan terms, including longer repayment periods and higher advance rates.
  2. Expanded Access to Financing: Rural businesses that may struggle to secure traditional loans gain access to capital.
  3. Versatility: Funds can be used for a wide range of purposes, including:
    • Business expansion or modernization
    • Equipment and machinery purchases
    • Real estate acquisition or improvements
    • Refinancing debt to improve cash flow

Strengthened Financial Security: With USDA backing, businesses can confidently pursue growth without excessive financial strain.

For Lenders:

  1. Risk Mitigation: The USDA guarantees a sizable portion of the loan (generally 80% or more), significantly reducing lender risk.
  2. Attractive Return on Investment: Lenders can offer competitive loans with reduced exposure to potential losses and less legal lending limit pressure. 
  3. Community Impact: Supporting rural businesses helps lenders contribute to the long-term vitality of the communities they serve and drive more relationship business to the bank. 

Eligibility Requirements

To participate in the program, certain criteria must be met:

  • Location: Businesses must operate in eligible rural areas, defined as communities with populations under 50,000. Check out our mapping tool to determine if your project is considered “rural” under USDA guidelines. 
  • Business Type: For-profit businesses, non-profits, cooperatives, partnerships, public bodies, individuals, and tribal organizations can qualify.
  • Use of Funds: Loans must be used to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. Some examples of eligible uses include (but are not limited to) 
    • Purchase and development of land, buildings, and associated infrastructure for commercial and industrial properties, including expansion or modernization.
    • Business acquisitions, start-ups, and expansions if jobs will be created or saved.
    • Purchase and installation of machinery and equipment. 
    •  Agriculture production, when production is a part of an integrated business also involved in the processing of agricultural products. 
    • Tourist and recreational facilities, including hotels, motels, bed and breakfasts, and resort trailer parks and campgrounds

Project Viability: Applicants must demonstrate the financial feasibility and sustainability of their project. From time to time an independent Feasibility Study may be required.

How the Program Works

Securing a USDA B&I loan involves a straightforward but detailed process. GLS simplifies every step for you:

Eligibility Review: We assess your business and project to confirm eligibility.

Document Preparation: GLS helps you prepare critical documents, including a comprehensive business plan, financial projections, and application forms.

Lender Identification: GLS has relationships with many banks throughout the country who are familiar with USDA loans. GLS can help steer you towards one of our partner banks, or can engage with your current bank even if they don’t know anything about USDA. 

Submission and Approval: We work with you and your lender to submit the loan application to the USDA and guide you through the approval process.

Real-World Impacts

The USDA B&I Loan Guarantee Program has played a pivotal role in transforming rural communities. From revitalizing small-town hospitals to funding renewable energy projects, this program has provided the foundation for countless success stories. By partnering with GLS, your business can become the next chapter in this legacy.

Get Started with GLS Today

If you’re ready to explore the USDA B&I Loan Guarantee Program and discover how it can drive your business forward, GLS is here to help. Book a call today to learn more. Together, we can build a brighter future for rural America.

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