Program Description

The Business & Industry (B&I) Guaranteed Loan Program helps boost the existing private credit structure of rural communities. The program does this through loan guarantees for rural businesses. These guarantees then allow private lenders to extend more credit than they would normally be able to. 

General Program Requirements

What kind of borrower may a lender request a guarantee for?
  • For-profit businesses
  • Nonprofits and cooperatives
  • Federally recognized tribes
  • Public bodies
  • Individuals
How may I use the funds?

Uses may include:

  • Business repair, modernization, or development.
  • Purchase and development of land, easements, or buildings.
  • Purchase of equipment, supplies, or inventory.
  • Debt refinancing that creates new jobs and meets other conditions.
  • Business and industrial acquisitions that keeps a business from closing, or saves or creates jobs.
Are there restrictions on the borrower?
  • Government or military employees may not own more than 20%.
  • U.S. citizens or legal permanent residents must hold majority ownership.
What is an eligible area?
  • Rural areas outside a city or town with a population under 50,000.
  • Projects in an eligible rural area may have a borrower based in a larger city.
  • Lenders may be located anywhere.

You can check the Rural Business Services page to see if your address is in an eligible area.

Before filling out any forms, please speak to a Business Programs Specialist at a state office. This will help save you time.

Application Process

If you're a lender, you may apply year round through a local state office. If you'd like to borrow, talk with your lender about the program.

Last Updated: 07/22/2020