The Business & Industry (B&I) Guaranteed Loan Program improves the economic health of rural communities. Rural business loan guarantees boost the existing private credit structure. Private lenders can then extend more credit than they would normally be able to.

What kind of borrower may a lender request a guarantee for?

• For-profit businesses
• Nonprofits and cooperatives
• Federally recognized tribes
• Public bodies
• Individuals

How may funds be used?

Uses may include:

• Business repair, modernization, or development.
• Purchase and development of land, easements, or buildings.
• Purchase of equipment, supplies, or inventory.
• Debt refinancing when new jobs are created and other conditions are met.
• Business and industrial acquisitions when it keeps the business from closing, or saves or creates jobs.

Are there restrictions on the borrower?

• Government or military employees may not own more than 20%.
• Majority ownership must be held by U.S. citizens or legal permanent residents.

What is an eligible area?

• Areas with a population under 50,000 or the urbanized area of a larger city or town.
• Projects must be in an eligible rural area, but the borrower may be based in a larger city.
• The lender may be located anywhere.

You can check Rural Business Services to see if your address is in an eligible area.

If you're a lender, you must apply through a local state office. If you'd like to borrow, talk with your lender about the program.

Please speak to a Business Programs Specialist at a state office before filling out any forms or applications. This will help save you time.