Business and Industry Loans

The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.




Related Programs

Examples of Funded Projects

Fiscal Year 2016: No Current Data Available Fiscal Year 2017: No Current Data Available Fiscal Year 2018: No Current Data Available


Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - See Regional Agency Offices.

Regional Agency Offices: http://www.rd.usda.gov/contact-us/state-offices.



Program Accomplishments

Not Applicable.

Uses and Use Restrictions

The program guarantees lenders? loans for real estate, machinery and equipment, working capital, and debt refinancing.

Assistance is limited to rural areas.

Some loan purposes such as golf courses, gambling, and agricultural production are restricted or limited.

Guaranteed loan funds in the amount of 5 percent of the funds available each year through FY 2018 will be set aside for the locally or regionally produced agricultural food products initiative.

Guaranteed loans are the only type of assistance under this program.

For FY2014 the maximum guarantee fee was increased to 3%.

A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual.

Guaranteed loan funds in the amount of 5 percent of the funds will be available each year until Management changes.

These funds will be set aside for the locally or regionally produced agricultural food products initiative.

Guaranteed loans are the only type of assistance under this program.

The annual guarantee fee is 3%.

Eligibility Requirements

Applicant Eligibility

A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual.

Beneficiary Eligibility

N/A.

Credentials/Documentation

A complete application containing such items as credit reports, financial statements, and appraisals are required as part of the application. This program is excluded from coverage under OMB Circular No. A-87. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

An environmental impact assessment is required for this program.

This program is eligible for coverage under E.O.

12372, 'Intergovernmental Review of Federal Programs.' An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Complete the requirements of RD Instruction 4279-B, section 4279.161(b).

Award Procedures

Applications are funded on a first-come first served basis according to priority points procedures outlined in RD Instruction 4279-B, section 4279.155.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Consolidated Farm and Rural Development Act, Section 310B, 7 U.S.C 1932, Section 310B, 7 U.S.C 1932.

Range of Approval/Disapproval Time

Applications typically take 60 days to approve.

Appeals

Denial for program assistance is appealable.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: 7 CFR Parts 4279 and 4287. This program has no matching requirements. This program has no matching requirements. This program has MOE requirements, see funding agency for further details. This program has MOE requirements, see funding agency for further details.

Length and Time Phasing of Assistance

Assistance is available each fiscal year until September 30 or until expended, whichever occurs first. See the following for information on how assistance is awarded/released: Lender?s loans are guaranteed so funds are not really ?released?.

Post Assistance Requirements

Reports

Guaranteed borrowers and guarantors are required to submit financial statements annually.

No cash reports are required.

No progress reports are required.

Yes, but as part of the overall financial reporting requirement.

Not duplication.

The Agency monitors the number of jobs created and/or saved by the borrower.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), 'Audits of States, Local Governments, and Non-Profit Organizations,' nonfederal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records

The lender is required to maintain a complete loan file no differently than it would keep for a borrower without a guarantee. This includes annual financial statements, correspondence, servicing actions, etc. The file may be inspected at the Agency?s request.

Financial Information

Account Identification

12-0403-0-1-452; 12-4155-0-3-452.

Obigations

(Guaranteed/Insured Loans) FY 16 $920,000,000; FY 17 est $892,244,000; and FY 18 est $0 - no approved President budget as of today.

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

The Business and Industry Guaranteed Loan Program regulations has been updated and published.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Regional Agency Offices: http://www.rd.usda.gov/contact-us/state-offices.

Headquarters Office

B&I Processing Branch U.S. Department of Agriculture Rural Business-Cooperative Service 1400 Independence Ave SW, Stop 3224, Washington, District of Columbia 20250-3224 Phone: 202-690-4103

Criteria for Selecting Proposals

Businesses must demonstrate the ability to repay the loan. Existing businesses must have 10 percent tangible balance sheet equity and new businesses must have 20 percent tangible balance sheet equity.




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