Summary:

The Business and Industry program bolsters the availability of private credit by guaranteeing loans for rural businesses. This program improves the economic health of rural communities by increasing access to business capital through loan guarantees that enable commercial lenders to provide affordable financing for businesses in eligible rural areas.

The loan guarantee percentage is published annually in a Federal Register notice. B&I loans approved in Fiscal Year 2021 will receive an 80 percent guarantee.

Eligible Recipients:

For-Profit Business; Local Government; Non-Profit Organization; Financial Institution

Eligible Recipients Detail:

For-Profit Businesses; Non-Profits; Cooperatives; Tribes; Public Bodies; Sole-proprietors or entrepreneurs are all eligible to receive guaranteed loans. Federal and State chartered banks; Savings and Loans; Farm Credit Banks; Credit Unions can all be approved as lenders for guaranteed loans.

Eligible Purpose:

Broadband Enabled Devices; Building Infrastructure; Anchor Institution Infrastructure; Last Mile Infrastructure

Eligible Purpose Detail:

Private-entity borrowers must demonstrate that loan funds will remain in the U.S. and the facility being financed will primarily create new or save existing jobs for rural U.S. residents. Business loans can be used for:

-Business conversion, enlargement, repair, modernization or development.
-The purchase and development of land, buildings and associated infrastructure for commercial or industrial properties.
-The purchase and installation of machinery and equipment, supplies or inventory.
-Debt refinancing when such refinancing improves cash flow and creates jobs.
-Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.