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Home B&I Loan Basics
Business and Industry Loans for Rural Areas
What is a B&I Loan? PDF Print E-mail

USDA loansThe Business and Industry (B&I) Loan Guarantee program provides a federal loan guarantee to the lender to finance private businesses located in rural areas of 50,000 population or less (including contiguous and adjacent urbanized area of such cities or towns). The program is funded by the United States Department of Agriculture (USDA) and is administered through its Rural Business Cooperative Service (RBS). World Net Capital I will apply to RBS for the B&I loan guarantee and, if approved, makes the loan and uses our lender to service it. The cost to the commercial lender is a one-time fee of 2% of the amount guaranteed. (The guaranteed portion of the loan does not count against a financial institution’s lending limit. All or part of the guaranteed portion of the loan may be sold on the secondary market.)


The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.


Last Updated on Wednesday, 11 September 2013 16:40
B&I Loan Requirements PDF Print E-mail

B&I loans may be used for the following purposes:

  1. Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities.
  2. Business conversion, enlargement, repair, modernization, or development.
  3. Purchase and development of land, easements, rights-of-way, buildings, or facilities.
  4. Purchase of equipment, leasehold improvements, machinery, supplies, or inventory.
  5. Construction, enlargement, or modernization
  6. Eligible fees and costs
  7. Educational or training facilities
  8. Tourist facilities
  9. Hotels/motels
  10. Pollution control or abatement
  11. Recreation facilities
  12. Working capital
  13. Refinancing when it is determined that refinancing is necessary to improve cash flow and create new or save existing jobs.
  14. Commercially available energy projects that produce biomass fuel or biogas.
Last Updated on Wednesday, 11 September 2013 16:42

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