USDA Business and Industry Program

 USDA (B&I) Loan Details

Loan Purpose: Commercial Real Estate acquisition, refinance & construction.

Loan Amount: $1,00,000 - $25,000,000

Equity Requirement: 20% down or maximum 80% Loan to Value

Interest Rate: Competitive Risk Based Pricing

Terms: 20 to 30 years No balloons as all loans are fully amortizing over the life of the loan.

Prepayment Penalty:   Prepayment penalties will apply

Fees: One-time SBA loan guarantee fee based on 3% of the guarantee loan portion.

Deposits: Good faith deposit required with submission of loan to underwriting and to be used towards a portion of the loan closing costs.

Collateral: First lien on real estate with LTV up to 80%

Personal guarantees:  For all individuals owning 20% or more. Corporate guarantees of affiliated companies may be required.

Industries: All types of for-profit businesses, some non-profits as well as some investment real estate must meet USDA eligibility requirements based on properties location.

Timing: Term Sheets within 24/48 hours of minimum information to qualify, Commitment Letters typically issued within 5 to 10 business days from submission to underwriting and Closing is typically within 45–60 days of signed commitment letter however is subject to USDA approval & funding allocation.