Property/Business Types - Manufacturing,
Services, Recreation, Tourism, Retail, Hospitality, Distribution, Healthcare, Assisted
Living and New Business Ventures.
Eligible Borrowers – Operating businesses,
Non-profit organizations, Real Estate Development and Investment Companies for owner
occupied properties, commercial lease properties, multifamily housing and community
facilities.
USDA Business & Industry Loans - US Department
of Agriculture allows qualified lender to provide business and industry financing
in cities with fewer than 50,000 people to acquire land, purchase or construct buildings,
acquire machinery & equipment, refinance business debt and provide working capital.
Loans are fully amortizing over period. Rates can adjust quarterly with Prime or
in 5 year intervals with 5 yr swap rates.
- Loan Size/Pricing
- $1 Mil to $10 Million/5 yr Swap or Prime + margin
- Loan to Values
- Existing Businesses - up to 90%
- New Businesses - up to 80%
- Maximum Term (Fully Amortized)
- Real Estate – 25 to 30 years
- Equipment – 15 years
- Working Capital – 7 years
Permitted Use of Proceeds – Real Estate
Acquisition or Expansion, Acquisition of Business, Machinery, Equipment, Working
Capital, Accounts Receivable and Inventory, Refinancing of Loans, Leases or other
Debt, and for Loan Fees, Professional Services and Feasibility Study Costs.
Qualifications - Business must have adequate
cashflow, adequate collateral value, life insurance on key principals and personal
guarantees on loan for owners with 20% or more ownership.
Ineligible Property/Business Types - Golf
Courses, Businesses with 10% or more revenue from legalized gambling, Lending or
Investment Institutions, Churches and Charitable Organizations and Insurance Companies.