21 Jan Business & Industry Guaranteed Loan Program
Program Name: Business & Industry Guaranteed Loan Program
Resource Type: Federal
Agency: Program Source: Loan
Description: The USDA provides guarantees of between 60-80 percent of a loan made by a commercial lender depending on the size of the loan. The percentage of guarantee, up to the maximum allowed, is a matter of negotiation between the lender and the Agency. The maximum percentage of guarantee is 80 percent for loans of $5 million or less, 70 percent for loans between $5 and $10 million, and 60 percent for loans exceeding $10 million. Exceptions to the $10 million limit for loans of up to $25 million are allowed under certain circumstances. The maximum repayment for loans on real estate will not exceed 30 years; machinery and equipment repayment will not exceed the useful life of the machinery and equipment purchased with loan funds or 15 years, whichever is less; and working capital repayment will not exceed 7 years. The interest rate for the guaranteed loan will be negotiated between the lender and the applicant and may be either fixed or variable.