USDA Rural Development Program
USDA Business & Industry (B&I) Loans — Up to $25M for Rural Businesses
Government-guaranteed financing with up to 80% USDA guarantee, competitive below-market rates, and longer repayment terms for businesses in eligible rural areas.
What Is a USDA B&I Loan?
The USDA Business and Industry (B&I) loan program helps for-profit businesses in eligible rural areas access financing that lenders might not otherwise extend. Backed by a USDA guarantee, these loans support larger projects with competitive rates and longer repayment terms, and funds can go toward real estate, equipment, working capital, business acquisitions, and processing facilities. The common thread is local impact: qualifying projects create or save jobs in rural communities.
Qualification depends on operating in an eligible rural area, running a for-profit business, and meeting USDA criteria around net worth and job creation, with terms and rates that vary by loan size and project. If your business sits outside a qualifying rural area, compare nationwide options like SBA 7(a) loans or the full range of SBA loan programs. You can also review broader USDA Rural Development financing for community and infrastructure projects.
Why Choose USDA B&I Loans?
USDA Business & Industry loans are designed to improve the economic climate in rural communities by supporting business development and job creation.
Loan amounts up to $25 million
Competitive interest rates
Longer repayment terms
Lower down payment requirements
Job creation and retention focus
Rural and small town development
USDA Loan Features
Maximum Amount:Up to $25 Million
Term Length:Up to 30 Years
Down Payment:As Low as 10%
Interest Rate:Competitive Rates
Common Use Cases
USDA B&I loans support a wide range of rural business activities that create jobs and strengthen local economies.
Manufacturing Facilities
Expand or establish manufacturing operations in rural communities
Processing Plants
Food processing, agricultural value-added processing facilities
Business Acquisition
Purchase existing businesses to maintain rural employment
Working Capital
Fund operations, inventory, and business growth initiatives
Eligibility Requirements
Meet these key requirements to qualify for USDA Business & Industry loan financing.
Business located in eligible rural area
For-profit business entity
Tangible net worth not exceeding $15 million
Average net income not exceeding $5 million
Unable to obtain credit elsewhere
Creates or saves jobs in rural areas
USDA B&I vs. SBA Loans
Both are government-backed guarantee programs, but they serve different borrowers. USDA B&I is built for businesses in rural areas and supports larger projects; SBA loans are available nationwide with a higher guarantee on smaller amounts.
| Feature | USDA B&I | SBA 7(a) |
|---|---|---|
| Location | Rural areas (population 50,000 or less) | Anywhere in the U.S. |
| Maximum amount | Up to $25 million | Up to $5 million |
| Government guarantee | 60-80% (tiered by loan size) | 75-85% |
| Best for | Larger projects in rural communities | Small businesses nationwide |
Not in a rural area? Compare SBA 7(a) and all SBA loan programs.
Explore Related Financing Options
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Up to $5M
SBA 7(a) Loans
The most flexible SBA program with up to $5M for working capital, equipment, and real estate.
Learn more$500K–$50M+
Commercial Real Estate Loans
Financing for office buildings, retail centers, industrial properties, and mixed-use developments.
Learn more$500K–$50M+
Construction Loans
Short-term financing for ground-up construction and major commercial renovations.
Learn moreVaries
USDA Rural Development
Federal programs supporting agricultural and rural business growth and expansion.
Learn moreReady to Grow Your Rural Business?
Get started with your USDA B&I loan application today and take advantage of competitive financing for rural business development.
FAQ
Frequently Asked Questions
USDA B&I loans are government-guaranteed loans designed to support businesses in rural areas with populations of 50,000 or less. The USDA guarantees up to 80% of the loan, enabling lenders to offer favorable terms including lower rates and longer repayment periods.
Eligible areas include towns and cities with populations of 50,000 or less that are not part of a major metropolitan area. The USDA provides an online eligibility map to check specific addresses.
Funds can be used for business acquisitions, real estate purchases, equipment, working capital, processing plants, and debt refinancing. The key requirement is that the project must create or save jobs in rural communities.
USDA B&I loans can be up to $25 million per borrower. The USDA guarantees up to 80% for loans of $5 million or less, 70% for loans between $5-10 million, and 60% for loans over $10 million.
To qualify, your business must be located in an eligible rural area, operate as a for-profit entity, and create or save jobs in the community. You generally need a tangible net worth not exceeding $15 million, average net income not exceeding $5 million, and must demonstrate you are unable to obtain reasonable credit elsewhere.
It depends on your location and project size. USDA B&I is built for rural businesses and supports larger projects up to $25 million, while SBA 7(a) is available nationwide with a higher guarantee on amounts up to $5 million. If your business is in an eligible rural area, USDA B&I is often the stronger fit for bigger projects.
Because USDA B&I loans involve both lender underwriting and USDA review, funding generally takes longer than a conventional loan. Having your business tax returns, financial statements, job-creation details, and confirmation of rural eligibility ready up front is the best way to keep the process moving smoothly.
Yes. Real estate purchases are an eligible use of USDA B&I funds, along with business acquisitions, equipment, working capital, processing plants, and debt refinancing. The project must be located in an eligible rural area and create or save jobs. Terms can run up to 30 years with a down payment as low as 10%.
Still have questions? Our loan experts are here to help.