PROGRAM DESCRIPTION: Direct loans to individuals and/or corporate businesses. The primary purpose of the program is to create or save jobs in rural areas (under 50,000 population).
TYPE OF ASSISTANCE: Loans may be for purchase of land, buildings, equipment and permanent working capital. Refinancing debts may also be eligible. Most types of businesses are eligible including recreational projects, hotels and motels, and agriculture production when part of an integrated operation.
MAXIMUM AMOUNTS: Generally the maximum amount of a loan approvable at the State level is $5,000,000 and up to $15,000,000 at the National Office. The Secretary can approve up to $25,000,000.
ELIGIBILITY REQUIREMENTS: Loans are made to most all types of legal entities and individuals involved in business that employ people in rural areas (under 50,000 in population).
INTEREST RATE AND TERMS: Interest rates are established the first of each quarter for the next ninety days. The interest rate will be that rate in effect at loan approval. The term may be up to seven years for working capital; useful life of equipment not to exceed fifteen years; and up to thirty years on real estate.
OTHER: Collateral will be considered along with the company history, management, repayment ability, equity, etc. A minimum of ten percent tangible balance sheet equity for existing businesses and twenty percent for new businesses is required.
CONTACT: Interested parties may contact any Rural Development Area Office.
**Funding does not currently exist for this program**
For assistance, please contact the Area Office which serves the area you are interested in, or Steve Byrd, Program Director. Mr. Byrd can be reached at 919-873-2043 or by email:steve.byrd@nc.usda.gov.
Please send any comments or suggestions to:
Rdwebmaster@usda.gov
Revised on: September 30, 2004