FINANCING

USDA Rural Development

The vision of USDA Rural Development is to be partners in helping the people of rural America develop sustainable communities. Its mission is to enhance the ability of rural communities to develop, grow, and improve their quality of life by targeting financial and technical resources in areas of greatest need through activities of greatest potential.

Business and Industry Loan Guarantee


Loan Amount	$25,000,000 maximum
Use of Funds	Working capital (term – no lines of credit) and/or fixed assets (land, building, equipment, and machinery)
Term of Loan	Negotiated; maximum for working capital is 7 years, for machinery and equipment 15 years, and for real estate 30 years. Balloons are not allowed
Rate of Interest	Negotiated
% of Financing Available	maximum 80% guarantee on loans up to $5,000,000. 70% guarantee for loans between $5,000,000 and $10,000,000. 60% for loans above $10,000,000
Down Payment (Equity)	Minimum of 20% tangible balance sheet equity on new businesses and 10% on existing businesses
Typical Structure	Variable
How Long Does it Take	60 days
Collateral	Yes, market value sufficient to cover the loan after lender discount
Personal Guarantees	Yes
Eligible Projects/Borrowers	Individual, cooperative, corporations, partnership, non-profit corporation, Indian tribes or public body. Most business purposes are eligible
Ineligible Businesses	Golf courses
Job Creation Criteria	No specific requirement
Incentives	Long term access to credit
Fees	A one-time, up-front fee of 2% of the guaranteed amount

For more information on this program, contact BLADC or visit the USDA’s Rural Development web site.

Brainerd Lakes Area Development Corporation

Minnesota

888-322-5232 or 218-828-0096

email us

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