Business and Industry Loan Guarantee Program
These are loan guarantees with an upper limit of $10 million. Some high-priority projects may be guaranteed up to $25 million by the administrator in Washington.
Most business purposes are eligible, e.g. building and equipment purchase or development, working capital (no lines of credit); aquaculture; commercial nurseries; tourist and recreation
facilities (except golf courses); hotels and motels; community facility-type projects; facilities for lease to private businesses; and housing development sites. Eligible borrowers may generally be an individual, cooperative, corporation, partnership, non-profit corporation, Indian tribes or public body. Applications are made by the lender and business to USDA.
Rates and terms are negotiated between lender and borrower. A minimum of 20 percent tangible balance sheet equity is required on a new business and 10 percent on an existing business.