Guaranteed Business and Industry Loans

Purpose

The Business and Industry (B&I) Guaranteed Loan Program guarantees loans made by commercial lenders against a portion (up to a maximum of 90 percent) of loss resulting from borrower default.  The purpose of the guarantee authority is to improve the economic climate in rural communities in “partnership” with the existing private credit sources by increasing the local lender’s legal lending limit and allowing “increased” benefits to return to the lender via sale of both the guaranteed and non-guaranteed portions of the loan in the secondary market.

Loan Purposes:

Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing.

Who Makes the Loan?

The loan is made by commercial and other recognized lenders; generally, authorized lenders, Federal or State chartered banks, credit unions, insurance companies, savings and loan associations, Farm Credit Banks or other Farm Credit System institutions with direct lending Authority, or a mortgage company that is part

of a bank-holding company, plus the National rural utilities Cooperative finance corporation, eligible rural utilities service borrowers, and other lenders, approved by the Agency, who have met the designated criteria. 

Who is Eligible?

Virtually any legally organized entity including a cooperative, corporation, partnership, trust or other entity organized and operating on a profit or nonprofit basis, Indian Tribe or Federally-recognized Tribal group, municipality, county, or other political subdivision of a State, or an individual.  There is no test for credit elsewhere requirement.

Other Criteria:

Collateral must be sufficient to protect the interest of the lender and the Government and usually include personal and/or corporate guarantees.

Loan Amount:

The maximum aggregate B&I Guaranteed Loan amount is $25 million to any one borrower.

Loan Maturity:

Maximum maturities are 7 years for working capital, 15 years for machinery and equipment, and 30 years for real estate.

Timeframes for Turnaround:

Loans are to be approved within 60 days of receipt of a completed application, subject to the availability of funds.

Where To Apply

Individuals may contact their local USDA office or

USDA, Rural Development
355 East Hancock Avenue
Athens, GA 30601
(706) 546-5162
www.rurdev.usda.gov/ga

Contact Mr. Clint J. Taylor, Jr. Acting Executive Director
Meriwether County Development Authority
17234 Roosevelt Hwy, Bldg. B
Greenville, GA 30222
Phone: (706) 672-3464    Fax 706-672-3494
email: velindawalton@windstream.net