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USDA BUSINESS AND INDUSTRY (B&I) LOAN PROGRAM
The USDA B&I loan program is considered the USDA's flagship program, helping create jobs and stimulate rural economies by providing financing for small businesses. The USDA B&I Program offers loan guarantees to rural businesses. These loans are made by banks and guaranteed by the USDA. Farmers State Bank specializes in B&I loans and can support a wide range of rural businesses, such as hotel owners, navigate the program.
A typical USDA B&I Hotel Loan includes:
- Businesses operating in an area of 50,000 inhabitants or less
- Used for business acquisitions, expansions and start-ups, inventory and equipment purchases, commercial real estate, refinance of existing debt (under certain conditions), or working capital
- Borrow up to $25 million (under certain conditions when scoring guidelines are met and approved by the USDA National Office) with a maximum loan-to-value (LTV) based on available collateral:
- Max LTV for Commercial Real Estate is 80%
- Max LTV for Equipment & Machinery is 70%
- Max LTV for Inventory is 60%
- Longer terms resulting in drastically lower monthly payments and conservation of cash flow.
- Commercial real estate - up to 30 years
- Equipment & machinery - the lessor of 15 years or its useful life
- Working capital - up to 7 years
SPEAK TO A FARMERS STATE BANK LENDING EXPERT TODAY!
Phone: (877) 850-3156 | Email: [email protected]