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3 Questions To Ask Yourself About USDA Business Loans

Mar 11, 2021
Posted by: Stearns Bank

You have a great idea and a business opportunity that needs quick action. But your business plan requires financial support. Among the financing options you consider should be a United States Department of Agriculture (USDA) Rural Development business loan.

In 2020, the USDA implemented a unified platform for all of its rural development guaranteed loan programs called One Rural Development (OneRD). OneRD brings the processing and administration of all rural development loans, including Business & Industry (B&I) Guaranteed Loans, together. With this unification, the USDA can issue a loan guarantee approval faster.

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These loans can feature better pricing and terms to borrowers than traditional funding, if the project qualifies. Remember, the USDA B&I loan program is only for businesses located in a rural area. The program’s purpose is to promote economic development and create jobs in rural America.

If you haven’t considered a USDA Rural Development loan, you may be missing out on a good financing option for your project. Contacting a lender from a participating bank, such as Stearns Bank, can get you started by reviewing your program eligibility, project goals and financing options. Your discussion with a lender could include the following:

Does Your Project Qualify?

You may be surprised to find out what qualifies as rural. According to the USDA, rural areas are “any area, other than a city or town that has a population of greater than 50,000 inhabitants, and the urbanized area contiguous and adjacent to such a city or town.”

Determine your eligibility on the USDA Rural Development eligibility and mapping tool.

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*Eligibility graphic courtesy of USDA

 

Can You Get Approval Within Your Timeline?

Individual borrowers must be citizens of the United States or reside in the country after being legally admitted for permanent residence. Private borrowers must demonstrate that loan funds will remain in the U.S. and the facility being financed will create new ­­­– or save – existing jobs for rural residents.

Business owners, developers and investors can learn more about the USDA OneRD program and commercial financing options by contacting a Stearns Bank lender.

We will consult with you about your project, understand your goals and challenges and collaborate on financing options that will lead to a successful outcome. To get in contact with us, just click below.

“Subject to credit approval/qualification. Terms, conditions and closing costs may apply. USDA policies may differ from Stearns Bank N.A.”

USDA Rural Development Loans  Stearns Bank is a USDA Multi-State Lender, a distinction earned by a select  group of banks. Learn more about how our experience with government loan  programs will make your financing experience easier. Contact Us About USDA Rural Development Loans