Business & Industry Loans

Eligibility Requirements

B and I loan eligibilityEligibility Requirements for the USDA B & I Loan Program

Click on this link to determine if you are eligible for the USDA Business & Industry loan program

Ineligible Business:
• Owner occupied & rental housing projects (Housing site development may be eligible).
• Golf Courses, Racetracks, & Gambling Facilities.
• Lending, Investment, & Insurance Companies.
• Projects involving more than $1 million & the relocation of 50 or more jobs.
• Pay any distribution to an owner or beneficiary who will continue in the business.
• Transfer the ownership of a business unless the transfer is necessary to keep the business from closing, or if it will expand job opportunities.
• Pay off creditor in excess of value of collateral.
• Finance any illegal business activity.
• Finance any line of credit.

Production Agriculture:
• Eligible only if the farm is vertically-integrated, ineligible for FSA Farm loan guarantees & the agricultural production part of the loan is secondary (less than 50% & less than $1 million).
• Nursery, Forestry, & aquaculture operations are eligible without these restrictions.

Borrower Eligibility:
Most types of Enterprises qualify – manufacturing, wholesale, retail, service (new or existing)
• Projects must be in a rural area— beyond any 50,000+ population city & its urbanized periphery
• Proprietorships, Partnerships, Corporations, LLC’s, Co-Ops, Trusts, Non-Profits, Tribes, & Public Bodies are eligible.
• Majority ownership must be held by US Citizens or Permanent Residents.
• Any ownership by government or military employees must be less than 20%.

Required Borrower Equity:
Minimum tangible Balance Sheet equity of:
o 10% for Existing Businesses.
o 20% for New Businesses.
o Up to 80% Loan-to-Value financing available.

General Credit Requirements:
o Adequate cash flow to meet debt obligations & operating expenses.
o Adequate collateral value.
o Life Insurance on key primaries
o Personal guarantee required for owners with 20% or more ownership.

Lender Eligibility :
• Any Federal or State Chartered Bank, Farm Credit System, Bank of Cooperative, Savings and Loan or Building & Loan Association, Bank-Holding Company’s mortgage Company, Credit Union or Insurance Company- subject to government credit examination & in good standing.
• Other lenders with commercial lending experience & and financial strength may also be approved.
• Lender’s officers/directors/owners may not have a substantial financial interest in the borrower.

8655 E. Via De Ventura, Suite G-200
Scottsdale, AZ 85258
Phone: (602) 885-1080