Securing a B&I Loan:Where to Begin &What to Expect Because USDA B&I loans are serviced through private lenders, the application process begins just like any other: by identifying a reputable lender. But unlike traditional loans, the USDA loan quali cation process requires specialized knowledge, so selecting a lender who specializes in USDA Rural Development loans is key. A reputable lender will oer competitive rates – typically 1-3% above the Market Prime Rate at closing. Exact rates are negotiated directly between the borrower and the lender, not set by the USDA, and can be xed or variable. Borrowers are required to maintain collateral in the form of land, equipment, or other xed assets with a value equal to or greater than the loan amount. Each B&I loan application is submitted to the USDA by the lender, after which the USDA typically approves or denies applications within 45 to 60 days. Typically, the application and approval process takes between 2 and 3 months from beginning to end. Transforming Capital into Con dence USDA B&I loans are fueling innovation, creating jobs, and enabling essential services in communities across America. For example, the program’s backing has breathed new life into one of Lake Michigan’s most treasured resorts, launched an engineering renaissance in rural Illinois, and empowered a third generation of beekeepers in Georgia to take their products national. By reducing the barriers to rural lending, the USDA is empowering lenders to fuel entrepreneurship, developers, and job creation with two essential resources: competitively priced capital and long-awaited con dence.
I couldn’t imagine a better place to build my business. e grounds of e Manor feature lush landscaping, vibrant gardens, waterscapes, and a breath-taking stone terrace. Brides and visitors alike are stunned by the beauty that is tucked away in the rural areas of North Florida.” -Steve Magiera, Owner
Made with FlippingBook Ebook Creator