Business Industrial Loans

The B&I Guaranteed Loan Program offers various benefits to the rural sector and is working towards their growth and development. This also offers employment opportunities to the rural community and helps them to become self reliant.In order to improve and develop the economic scenario and environment in rural societies, it is necessary to develop industry, business and employment opportunities in the rural areas. The Business and Industry Guaranteed Loan Program facilitates just this. The program achieves this by guaranteeing quality government loans that is intended to bring in lasting benefits to the rural community.These business and industrial loans may be availed by an individual, corporation, partnership, cooperative society or any other legal set up operating as a profit or non profit organization. This business loan category is also available for the benefit of an Indian tribe which is under the State or Federal reservation and other such recognized tribal groups. As the loan name Business and Industry Guaranteed Loan Program suggests, the borrower of such loans must be engaged in a business activity that will undertake the following:• Encourage the preservation, development and utilization of water for aquaculture
• Promote the growth and expansion of solar and other renewable energy systems in order to lessen dependence on non renewable sources.
• Provide and improve employment opportunities
• Bring about positive changes in the overall economic conditionsTo be eligible for such government loans, the individual must be a US citizen or a permanent resident of the United States; 51% of the owners of corporations availing such loans must be US citizens or permanent residents and normally the B&I loan category is offered in the rural areas. Keeping in mind the general regulations of this business loan category, such loans must be utilized for the purposes of business expansion, conversion, repair and development or even modernization of existing businesses; purchase of land, equipment, machinery, inventory, buildings and other supplies and facilities. These are some examples and the loans could be used for other similar purposes.Normally, the maximum amount of Government Loans offered under the B&I Guarantee program is $10 million, the maximum percentage of guarantee for loans of $5 million or less being 80%; 70% for loans between 5 and 10 million and 60% for loans above $10 million. Real estate related loans must be repaid within 30 years; loans taken for machinery and equipment should not go beyond the useful life of such equipment or machinery or 15 years, whichever is less and 7 years is the maximum repayment period for working capital loans. The interest rates are subject to negotiation and could be either fixed or variable and could also be subject to approval and appraisal by the Agency. Completed applications with the correct loan name and required particulars must be delivered to the USDA Rural Development State Office. More details about this business loan category can be availed from the USDA website.