Business and Industry Guaranteed Loans
Active
- Assistance listing
- 10.768
- Agency
-
Rural Business Cooperative Services
Washington Office, Department of Agriculture
- Grant awards
- Not on record
Program facts
- Also known as
- B&I Guaranteed Loan Program
- Treasury accounts
-
- 12-0403-0-1-452
- 12-4155-0-3-452
- More information
Program details come from SAM.gov Assistance Listings. Updated .
About this program
The Department of Agriculture Rural Housing Service provides guaranteed loans through the Business and Industry Guaranteed Loans program (CFDA 10.768) to improve business, industry, and employment in rural communities, with assistance available each fiscal year until September 30 or until expended.
The program guarantees lender loans for real estate, machinery and equipment, working capital, and debt refinancing in rural areas with populations under 50,000 inhabitants. Loan purposes including golf courses, gambling, and agricultural production face restrictions or limitations. Borrowers must demonstrate repayment ability; existing businesses require 10 percent tangible balance sheet equity and new businesses require 20 percent tangible balance sheet equity. A borrower may be a cooperative organization, corporation, partnership, 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. The guarantee itself constitutes the sole assistance type under this program. Applicants pay an initial guarantee fee of 3 percent of the loan amount and an annual renewal fee of 5 percent of the outstanding guaranteed principal amount as of December 31st.
Applications typically take 60 days to approve and are funded on a first-come first-served basis according to priority points procedures outlined in RD Instruction 4279-B, section 4279.155. Denial for program assistance is appealable. Lenders are required to maintain complete loan files as they would for non-guaranteed borrowers, including annual financial statements, correspondence, and servicing actions, subject to Agency inspection.
The source provided does not include recent grant awards, recent grant opportunities, portfolio activity data, or award economics information necessary to assess current funding volume, award cadence, or competitive positioning under this program.
Objective and description
- Objective
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.
- Description
The program guarantees lenders' loans for real estate, machinery and equipment, working capital, and debt refinancing. Guaranteed loans are the only type of assistance under this program. The guarantee is not intended for loans that are marginal or substandard. Assistance is limited to rural areas with populations of less than 50,000 inhabitants under most circumstances. Some loan purposes such as golf courses, gambling, and agricultural production are restricted or limited. The initial guarantee fee is 3% of the loan amount and the annual renewal fee is 5% of the outstanding guaranteed principal amount of the loan as of December 31st.
Eligibility
- 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.
- Uses of assistance
The program guarantees lenders' loans for real estate, machinery and equipment, working capital, and debt refinancing. Guaranteed loans are the only type of assistance under this program. The guarantee is not intended for loans that are marginal or substandard. Assistance is limited to rural areas with populations of less than 50,000 inhabitants under most circumstances. Some loan purposes such as golf courses, gambling, and agricultural production are restricted or limited. The initial guarantee fee is 3% of the loan amount and the annual renewal fee is.5% of the outstanding guaranteed principal amount of the loan as of December 31st.
- Use restrictions
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%
- Length and time phasing of assistance
Assistance is available each fiscal year until September 30 or until expended, whichever occurs first.
How to apply
- 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.
- Award procedure
Applications are funded on a first-come first served basis according to priority points procedures outlined in RD Instruction 4279-B, section 4279.155.
- Time to approval or disapproval
Applications typically take 60 days to approve.
- Appeals
Denial for program assistance is appealable.
Quick answers
What is Assistance Listing 10.768?
Assistance Listing 10.768 is Business and Industry Guaranteed Loans, a federal grant program run by Rural Business Cooperative Services (Washington Office).
What is the CFDA number for Business and Industry Guaranteed Loans?
Its CFDA number is 10.768: Assistance Listing numbers were called CFDA numbers before 2018.
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