Business & Industry Guarantee Loan Program

The B&I program is similar to the SBA’s 7(a) Guaranteed Loan Program, but eligible projects must be located in communities with populations of less than 50,000. The major benefit to rural lenders involves the loan guarantee limits. The B&I loan guarantee limits exceed the maximum limits of the SBA 7(a) program.

About the B&I Loan Program

The B&I Guarantee Loan Program promotes economic development in rural communities. The goals of the program are to create and maintain employment and improve a small business’ access to capital. This program is administered by the Rural Business-Cooperative Service of USDA-Rural Development.


You might be eligible for a B&I if:

  • Your business is a legal entity.
  • Your business can be of any size; there are no size restrictions.

Projects Financed

Characteristics of projects financed for this loan program typically include:

  • Business and real estate acquisition.
  • Construction and improvements.
  • Purchase of machinery and equipment.
  • Working capital, inventory, accounts receivable.
  • Pollution control and abatement.
  • Business start-ups.
  • Refinancing under certain conditions.

Loan Amount

Loan guarantees are limited to a maximum of $10 million per borrower, although RD may approve requests up to $25 million.

  • 80% loan guarantee up to $5 million
  • 70% loan guarantee over $5 million to $10 million
  • 60% loan guarantee over $10 million to $25 million

**SCKEDD financing fee – up to 1% of the loan amount (paid by the applicant)

Interest Rate/Fees

  • Interest rates and fees are determined by the private lender.


  • Working capital – seven (7) years.
  • Machinery and Equipment – 15 years (or useful life).
  • Real estate – 30 years.


  • Usually the assets financed with the loan proceeds are used as collateral.
  • Personal and corporate guarantees are required.

For more information, please contact

Christie Henry, Lending Program Manager
9730 E. 50th Street N.
Bel Aire, Kansas 67226