USDA (B&I) Program Overview

The B&I Guaranteed Loan Program improves, develops or finances business, industry and employment and improves the economic and environmental climate in rural communities. Projects are secured by a 1st Deed of Trust / Mortgage on General and Special Purpose, commercial real estate, meeting USDA qualifications, having a maximum Loan to Value of 80%, depending on program parameters.

A borrower must be engaged in or proposing to engage in a business that will:

■Provide employment
■Improve the economic or environmental climate
■Promote the conservatism, development, and use of water for aquaculture; or
■Reduce reliance on non-renewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems


Borrower eligibility is fundamental with a few disparities from the SBA; the borrowing entity must reside in a community (MSA) of 50M or less and the borrower must have tangible balance sheet equity at the loan closing of no less than 10-20% for existing businesses, 20% for new businesses and 40% for energy or bio-based businesses.

Maximum Loan Amount: 1st DOT / Mortgage – $4,000,000

Rate Option: Prime Based Quarterly Adjustable

Maturity & Amortization:

■Real Estate – Up to 30 Years
■Equiupment Acquisition – Up to 15 Years
■Permanent Working Capital – Up to 7 Years


Eligible Property Types:

■Office: Professional, Condominium, Medical, Dental and Veterinary
■Special Purpose: Assisted Living Facilities / Adult Care, Day Care Facilities, Senior Care / Senior Housing
■Continuing Care Centers, Ambulatory Surgical Centers, MRI Centers, Diagnostic or Labs


USDA B&I Eligible Use of Proceeds:

■Purchase and development of land, easements, rights-of-way, buildings, or facilities
■Business conversion, enlargement, repair, modernization, or development
■Purchase of equipment, leasehold improvements, machinery or inventory
■To refinance existing business indebtedness that is not already structured with reasonable terms and conditions
■Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities


USDA B&I Rates / Fees:

Interest rates are generally adjustable based, tied to the Prime Index. Maturities up to 30 years are available, based upon the use of funds. Usual and customary fees are permitted and the USDA collects up to a 2% guarantee fee. A 0.25% renewal fee is assessed annually based on the outstanding principal balance.

Tell us about your goals, and we will help you understand the strategies you should consider. Contact us at 1-800-324-8808 or by email at mark@capital4healthcare.com.