The USDA B&I Guaranteed Loan Program
The USDA Business & Industry (B&I) Guaranteed Loan Program is a heavily underutilized financing tool in commercial lending. Available to businesses in rural areas with populations under 50,000, B&I loans offer government backed guarantees of up to 80%, which translates to lower rates, longer terms, and higher approval odds than conventional commercial loans. Loan amounts go up to $25M for projects that create or retain jobs in rural communities. CapitalAx works with USDA approved lenders across the country to place B&I loans for manufacturing facilities, agricultural operations, healthcare clinics, hospitality projects, and commercial real estate in qualifying rural and suburban markets. If your business or property is outside a major metro area, there is a strong chance you qualify for USDA financing and the favorable terms that come with it.
Deal Structure at a Glance
Who Is This For?
- Business owners in rural communities (populations under 50,000)
- Agricultural and agribusiness operators
- Rural healthcare and medical facility operators
- Manufacturers and processors in non metro areas
- Hotel and hospitality operators in rural tourism markets
Common Use Cases
- Commercial real estate acquisition in rural areas
- Business expansion and job creation in qualifying communities
- Agricultural processing and value added operations
- Rural healthcare facility construction and equipment
- Refinancing existing debt with better government backed terms
Borrower Scenarios
Examples of how this financing can be used.
A feed mill operator in a Central Texas town of 8,000 residents acquiring a 40,000 sq ft processing facility through a USDA B&I loan, securing a 25 year term at a rate 150 basis points below what conventional lenders quoted, with the USDA guarantee making a smaller local bank comfortable with the loan size.
A rural hospital expanding its emergency department and adding a 12 bed wing, financing the project through USDA B&I with a 30 year term that matched the facility's long useful life, creating 35 permanent healthcare jobs in a community that qualified as a USDA designated underserved area.
A boutique hotel developer in a rural tourism corridor building a 28 room property near a state park, using USDA B&I financing because the town's population of 12,000 qualified as rural, accessing terms that conventional hospitality lenders could not match.
A manufacturing company refinancing high interest conventional debt into a USDA B&I loan with a 20 year amortization, meaningfully reducing monthly payments and freeing up cash flow to hire 8 additional production workers in a community with persistent unemployment.
Why Work With CapitalAx
We help borrowers organize usda loans requests and compare lending sources that may fit the transaction.
USDA Eligibility Screening and Lender Matching
Not every lender participates in the USDA B&I program, and the ones that do have varying appetite for deal sizes, property types, and geographies. We pre screen your location and project for USDA eligibility, then match you with approved lenders who actively deploy B&I capital in your market.
Application Packaging for Government Backed Programs
USDA B&I applications require detailed feasibility studies, environmental assessments, and job creation projections that standard commercial loan applications don't include. We prepare these components to USDA standards, reducing the back and forth that delays approvals and frustrates borrowers unfamiliar with government lending requirements.
Rural Market Expertise Across Property and Business Types
Rural deals often require lenders who understand agricultural economies, tourism dependent markets, and healthcare deserts. CapitalAx has placed loans in communities across Texas and nationwide where the local economy doesn't fit the standard metro underwriting model, and we know how to present these deals so lenders see the opportunity rather than the perceived risk.
Tools & Calculators
Commercial Real Estate Cap Rate Calculator
Calculate commercial real estate cap rate from NOI and property value to evaluate investment returns.
Commercial Property Value Calculator
Use a commercial property valuation calculator to estimate income based value from NOI and cap rate.
Shopping Center Underwriting Calculator
Estimate tenant income, NOI, value and debt service coverage while keeping leasing costs separate.
Debt Yield Calculator
Calculate debt yield from NOI and loan amount, and see the maximum loan a lender's debt yield floor allows.
Related Loan Programs
Related Property Types
Looking for a different financing structure? Browse all loan programs.