USDA Business & Industry Loans
for Commercial Real Estate

The USDA B&I Guaranteed Loan Program is a federal program administered by USDA Rural Development that provides guarantees to lenders making loans to businesses in eligible rural areas. The USDA guarantee — covering 80–85% of the loan amount — reduces lender risk and allows participating banks and credit unions to offer terms they would not provide on unguaranteed commercial loans.

B&I loans can be used for a wide range of commercial real estate and business purposes, including property acquisition, construction, renovation, equipment purchase, and working capital. For real estate, maximum loan terms extend to 30 years — significantly longer than most conventional CRE loans and a meaningful benefit to monthly debt service coverage.

• Loan amounts: up to $25 million
• Government guarantee: 85% for requests below $5 million; 80% for requests of $5 million or more
• Real estate terms: up to 30 years
• Interest rates: negotiated between borrower and lender; fixed or variable
• Down payment: typically 10–20% depending on lender and project type
• Non-collateral requirement: the guarantee partially offsets collateral shortfalls

• Purchase and development of land, buildings, and infrastructure for commercial or industrial properties
• Construction of new commercial facilities
• Renovation or expansion of existing commercial buildings
• Purchase of machinery and equipment
• Working capital (limited portion of total loan)
• Debt refinancing (when it improves cash flow and creates or preserves jobs)

USDA B&I loans are available in rural communities with populations of fewer than 50,000 people. The borrower's corporate headquarters may be located in a metropolitan area — what matters is that the project site is in an eligible rural area. USDA provides an online eligibility mapping tool to verify whether a specific property address qualifies.

For borrowers and developers active in smaller markets across the Southeast and other rural regions, B&I loans can provide access to capital that would be significantly more expensive or unavailable through conventional channels.

Eligible borrowers include:

• For-profit businesses (any legal structure)
• Nonprofit organizations
• Cooperatives and federally recognized tribes
• Individuals operating eligible businesses

Financial eligibility thresholds: tangible net worth below $15 million and average after-tax net income below $5 million for the prior two years.

USDA B&I loan processing requires an approved lender and familiarity with USDA Rural Development's application and review process. Not all commercial lenders participate, and lender experience with USDA processing significantly affects closing timelines. Gumption connects you with USDA-approved lenders who actively deploy B&I capital, alongside conventional alternatives — so you can make an informed comparison.

• Access to USDA-approved lenders with active B&I programs
• Compare USDA guaranteed terms with conventional alternatives side by side
• Advisors familiar with rural market underwriting and USDA processing requirements
• Free to submit and receive term sheets — Gumption charges borrowers an origination fee only when a loan closes with a recommended lender