USDA Loan PRograms for business
For any project to be eligible for USDA loans it must be classified as rural. Rural areas are any areas other than: (1) A city or town that has a population of greater than 50,000 inhabitants; and (2) The urbanized area contiguous and adjacent to such a city or town, as defined by the U.S. Bureau of the Census using the latest decennial census of the United States. In general, it is a loan guarantee program, with incentives for both the borrower and the bank to participate: A loan Guarantee Program -between 60-80% of loan You need to find a partner Bank The loans must be fully amortized, without calls or balloon repayment structures. Longer terms can reduce additional loan fees that may be incurred in the future on shorter term loans or balloon loans. The interest rates for the loans are negotiated between the lender and the applicant and may be either fixed or variable (or a combination of fixed and variable). Must create jobs Must be USDA Eligible Ther...