USDA?s B&I Loan Guarantee Program - For Businesses Creating Employment In Rural
Posted by Frank Stain on September 19th, 2017
USDA’s Business & Industry (B&I) Loan Guarantee Program is managed and regulated by an agency of its Rural Development wing - Rural Business and Cooperative Program. With B&I Guaranteed Loan Program, USDA guarantees loans to business establishment in remote and rural areas. The objective of this loan guarantee program is to develop, finance, and improve employment, business, and industry. The additional purpose that it serves is to promote improvement of environmental and economic status of rural areas. To achieve this objective, this USDA agriculture loan guarantee works to improve the running private credit structure by allowing the disbursement of loan guarantees for projects that are a part of its mission to empower rural communities.
There has been a significant increase in the number of loan guarantees that have been provided through the B&I Guaranteed Loan Program over the years. To be precise, in the last few years the US Department of Agriculture has issued 500-600 loans guarantees through B&I program. The statistics also show that all the 47 US states have received loan guarantees in the last decade or so with California coming out as the state with the most number of guaranteed loans in that period. This quite clearly explains the geographical diversity of this program. It has helped funding business in most parts of the rural America. Though you may argue that some areas have been able to receive much better program penetration when compared to other areas.
The B&I Guaranteed Loan Program facilitates loans to rural businesses that these businesses might never be able to receive owing to loan size limitations of other loans. The B&I program doesn’t even narrowly focuses on the participant lenders and borrowers. The most important requirement that it asks businesses to meet is their presence in rural areas.
USDA’s B&I Loan Guarantee Program is meant for businesses that save and create employment in rural areas. This is a great financial initiative by the USDA to promote more businesses to move towards rural America, thus helping these rural communities to flourish. When a business is setup in an area, it is bound to create jobs for local people, and this is the main objective of this loan program. Entities seeking loan under B&I program could be cooperative, partnerships, non-profit or for--profit organizations, or individuals, US Department of agriculture loans are not for any particular business model. Size of the business is not a matter of concern when a business entity is applying for a loan under B&I Loan Guarantee Program.
Author’s Bio: The author is a blogger. This article is about USDA agriculture loan guarantee.