Business and Industry Guaranteed Loans
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.
Eligibility
Eligible Applicants
- Federally Recognized Tribal Government
- For-Profit Organization
- Builder/Contractor/Developer
- Small Business Person
A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual.
How to Apply
Award Procedure
Applications are funded on a first-come first served basis according to priority points procedures outlined in RD Instruction 4279-B, section 4279.155.
Applications typically take 60 days to approve.
Program details & compliance
Description
The program guarantees lenders’ loans for real estate, machinery and equipment, working capital, and debt refinancing. Guaranteed loans are the only type of assistance under this program. The guarantee is not intended for loans that are marginal or substandard. Assistance is limited to rural areas with populations of less than 50,000 inhabitants under most circumstances. Some loan purposes such as golf courses, gambling, and agricultural production are restricted or limited. The initial guarantee fee is 3% of the loan amount and the annual renewal fee is 5% of the outstanding guaranteed principal amount of the loan as of December 31st.
Mission Categories
Primary: Small Business
Other categories:
Economic DevelopmentConstruction, Renewal and Operations
Use of Funds
Allowed Uses
The program guarantees lenders’ loans for real estate, machinery and equipment, working capital, and debt refinancing. Guaranteed loans are the only type of assistance under this program. The guarantee is not intended for loans that are marginal or substandard. Assistance is limited to rural areas with populations of less than 50,000 inhabitants under most circumstances. Some loan purposes such as golf courses, gambling, and agricultural production are restricted or limited. The initial guarantee fee is 3% of the loan amount and the annual renewal fee is.5% of the outstanding guaranteed principal amount of the loan as of December 31st.
Restrictions
A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual. Guaranteed loan funds in the amount of 5 percent of the funds will be available each year until Management changes. These funds will be set aside for the locally or regionally produced agricultural food products initiative. Guaranteed loans are the only type of assistance under this program. The annual guarantee fee is 3%
Required Documentation
A complete application containing such items as credit reports, financial statements, and appraisals are required as part of the application.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart F — Audit Requirements
Formula
Depending on guarantee, awardee should have 10% to 20%.