The Business and Industry (B&I) Guaranteed Loan Program helps
create jobs and stimulates rural economies by providing financial
backing for rural businesses. This program provides guarantees
up to 90 percent of a loan made by a commercial lender. Loan proceeds
may be used for working capital, machinery and equipment, buildings
and real estate, and certain types of debt refinancing. The primary
purpose is to create and maintain employment and improve the economic
climate in rural communities. This is achieved by expanding the
lending capability of private lenders in rural areas, helping
them make and service quality loans that provide lasting community
benefits. This program represents a true private- public partnership.
B&I loan guarantees can be extended to loans made by recognized
commercial lenders or other authorized lenders in rural areas
(this includes all areas other than cities or unincorporated areas
of more than 50,000 people and their immediately adjacent urban
or urbanizing areas). Generally, recognized lenders include Federal
or State chartered banks, credit unions, insurance companies,
savings and loan associations, Farm Credit Banks or other Farm
Credit System institutions with direct lending authority, a mortgage
company that is part of a bank holding company, and the National
Rural Utilities Finance Corporation. Other loan sources include
eligible Rural Utilities Service electric and telecommunications
borrowers and other lenders approved by RBS who have met the designated
criteria.
Assistance under the B&I Guaranteed Loan Program is available
to virtually any legally organized entity, including a cooperative,
corporation, partnership, trust or other profit or nonprofit entity,
Indian tribe or Federally recognized tribal group, municipality,
county, or other political subdivision of a State.
The maximum aggregate B&I Guaranteed Loan(s) amount that can
be offered to any one borrower under this program is $25 million.
