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U.S. Department of Agriculture (USDA)- Guarantee, Loans and Grants
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Posted On: Thursday January 22nd, 2004 at 12:00am EST
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U.S. Department of Agriculture (USDA)- Guarantee, Loans and Grants
The USDA has a number of financial federal programs. However, the major programs for small businesses are administered through the USDA Rural Development's division. The program objective is to create incentives for business lending or investments in the rural areas and for economic development by saving and creating jobs. To determine if the area is eligible and is considered rural, click on to: www.rurdev.usda.gov/rbs/busp/b&i_gar.htm.
For specific assistance in outreach, contact the USDA Office of Small and Disadvantaged Business Utilization at: www.usda.gov/osdbu
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| USDA PROGRAMS FOR RURAL BUSINESSES |
| USDA PROGRAM |
DESCRIPTION OF PROGRAM |
TYPICAL FUNDING |
Business & Industry Guaranteed Loan
(B & I) |
USDA guarantees business loans made by banks approved by USDA. It is lender-driven.
Purpose: The loans guaranteed can be for real estate, equipment, working capital and refinancing-for non-farm businesses.
Eligibility areas: All rural areas other than cities of more than 50,000 population and their adjacent urbanized areas.
www.rurdev.usda.gov/rbs/busp/b&i_gar.htm |
$1 million - $10 million |
Rural Business Enterprise Grant
(RBEG)
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Grants provided to assist public bodies, nonprofit corporations and federally recognized Indian tribal groups finance and facilitate development of small and emerging private business enterprises.
Purpose:
For acquisition and development of land and construction of buildings, plants, equipment, and refinancing.
Eligibility areas: All rural areas other than cities of more than 50,000 population and their adjacent urbanized areas.
http://www.rurdev.usda.gov/rbs/busp/rbeg.htm |
$25,000-$100,000 |
Inter-mediary ReLending Program
(IRP) |
Funds are lent to intermediaries, which, in turn, provide loans to recipients who are developing business facilities or community development projects. Eligible intermediaries include public bodies, nonprofit corporations, Indian tribes and cooperatives.
Purpose:
Capitalizes locally run revolving loan programs for small businesses unable to qualify for bank financing.
Eligible areas: Unincorporated areas with less than 25,000 population.
www.rurdev.usda.gov/rbs/busp/irp.htm |
Max. of $750,000 to relenders for business loans up to $150,000 |
Rural Co-operative Develop.Grant
(RCDG) |
Loans and grants are available to rural utilities service electric or telecommunications borrower.
Purpose:
To finance startup ventures and business expansion projects; to establish revolving loan programs operated at local level by the utility and to overall assist in economic development in rural areas.
Eligible areas: Rural population
All rural areas other than cities of more than 50,000 population and their adjacent urbanized areas.
http://www.rurdev.usda.gov/rbs/coops/rcdg/rcdg.htm |
$50,000 - $300,000 |
Value-Added Ag Product Market Dev. Grants
(VADG) |
Makes grants to help producer-owned businesses add value to products.
Purpose:
For working capital and adding value for:
- Change in product physical state.
- Enhance product value.
- Product segregation.
- Product produces renewable energy.
Eligible areas: No limitations.
http://www.rurdev.usda.gov/rbs/coops/vadg.htm |
$50,000 - $300,000 |
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Rural Business Oppportunity Grant
(RBOG)
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Supports economic development planning in rural areas.
Purpose:
Grants made to local economic development programs that support non farm businesses.
http://www.rurdev.usda.gov/rbs/busp/rbog.htm
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$50,000 or less |
Renewable Energy & Energy Efficiency Program
(REEE) |
Grants available to applicants (farmers and small businesses) who demonstrate financial need. Purpose of grant must be specifically for projects to purchase renewable energy systems or make energy efficiency improvements.
Eligible areas: All rural areas other than cities of more than 50,000 population and their adjacent urbanized areas:
http://www.rurdev.usda.gov
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$2,500 to $250,000 for energy efficient projects; Up to $500,000 for renewable energy projects. |
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