Rural Development Business and Industrial Loan

The Rural Development Business and Industrial Loan is a rural loan offered by the United States Department of Agriculture, or USDA. The USDA offers these Business and Industrial loans, sometimes called “B&I Loans”, to businesses in rural communities to support the economic health of the community as a whole.

Who Can Use Rural B&I Loans?

Any individual or organization may apply, whether they are operating on a for-profit or nonprofit basis. They must be doing business which employs other people in the community or bring other economic gain to the community. The most important qualification, however, is that they are doing business in a “rural community.” A rural community is defined as a “community with fewer than 50,000 residents.”

What Can These Loans Be Used For?

Rural B&I loans can be used for any business purpose, from establishing a business to continue the growth of the business. For example, a rural business can use the funds to purchase land and pay for construction if they wish to expand their business. Funds can also be used to purchase new equipment or repair existing resources, or to modernize or update existing facilities.

How Do I Apply?

To apply for a USDA B&I Loan, you must contact the USDA Rural Development State Office in your area. A list of all Rural Development Offices is on file at the USDA web site at http://www.rurdev.usda.gov/recd_map.html.