USDA Business & Industry Loans (B&I)

The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and evironmental climate in rural communities. This purpose is acheived by boistering theexisting private cresit structure through the guarantee of quality loans which will provide lasting community benefits.

Acceptable Market Area:    Nationwide, Rural areas with town population <50,000

Guidelines:

                Eligible uses:                         Purchase, Refinance, Building Renovations, Working Capital, 

                                                              Equipment

                Property Type:                      Most Commerical property types eligible

                Loan Amount:                        $500,000 - $10,000,000

                               LTV:                        80%

                  Amortization:                       30 years (Equipment 15 years, blended)

                              Term:                       30 years

                              FICO:                       650 (Minimum)

                             DSCR:                      1.20x (O/O), 1.40 - 1.50x (Investor)

                         Ineligible:                      Multifamily, Church, Restaurants, Bar, Gas Station

                             Rates:                      10 year fixed at 7.50%, then converts to ARM (prime + 1.50%)

                                                              OR ARM at (Prime + 2.00%)

                      Seasoning:                       Minimum 1 - 2 years

   Pre-payment Penalities:                      5,4,3,2,1