Understanding USDA B&I Loan Programs

B&I stands for Business and Industry. Business and industry guaranteed loans, as well as cooperative programs developed with the support of the USDA, have helped a multitude of communities develop resources for a wide range of needs and services. B&I guaranteed loans help individuals develop and finance businesses, improve their communities, develop industries, as well as improve the environment and economics in rural communities.

Business and industry guaranteed loans may include but are not limited to:

• IRP - Intermediary Relending Program
• REEEP - Renewable Energy and Energy Efficiency Program
• RBEG - Rural Business Enterprise Grants
• REDLG - Rural Economic Development Loans and Grants
• 9006 Grant - Guaranteed loans for renewable energy programs

Organizations that may borrow and apply for such loans may be corporations, partnerships, as well as profit or nonprofit organizations or those building or developing on Federal or State Indian reservation land. Individuals may also apply for loans through USDA B&I loan programs to meet individual needs and goals.

There are a few stipulations that individuals must follow in order to apply for a USDA B&I guaranteed loan. These include, but again, are not limited to:

• The borrower must be able to provide future employment
• The borrower must show that he or she will improve local economy or environmental concerns
• The borrower must show that he or she will support conservation
• The borrower shall promote the development of renewable energy resources

Individuals must also be United States citizens or those who have applied for permanent residency. Funds may be used to convert businesses or perform enlargement and repairs of existing buildings. They may also be used to purchase land, buildings, and easements or right of ways. Loans may also be used to purchase equipment, machinery and other supplies, in addition to fixtures, furniture, and working capital.

Individuals interested in a USDA B&I loan program should be aware that their loan amount may not exceed $5,000,000 with Griffin Capital. Repayment must be made within 30 years. Rates are charged according to risk and type of loan. Borrowers should also be aware that collateral is required and must be of sufficient value to protect Griffin Capital.

Borrowers who finance under a USDA B&I loan program must also live in areas with populations of less than 50,000. However, when certain criteria have been met, there is no restriction on the size of the business being developed. Closing costs and other fees are also eligible to be included in loan amounts.

The USDA and its slogan of being Committed to the Future of Rural Communities offers a wide range of business programs, as well as national rural development opportunities and partnerships.

For more information or to apply for a loan visit www.ysploans.com