USDA (B&I) Loan Details
Loan Purpose: Commercial Real Estate acquisition, refinance & construction.
Loan Amount: $500,000 - $10,000,000
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.