Business and Industry Guaranteed Loans
Administrative Agency:
Federal Agency: U.S. Department of Agriculture, Rural Development
Program Goals:
To assist individuals, corporations, and public or private organizations in rural areas obtain quality loans for business development.
Resource Provided:
Loan guarantees of up to 90% of the loan amount. Loans may be up to $25,000,000.
Eligibility:
Applicant may be an individual, partnership, LLC, for-profit or non-profit corporation, cooperative, or Alaska Native entity. The project must be in a rural area or city of less than 50,000 population.
Alaska Program Status:
Most commercial lenders in Alaska have used the program. Funding is readily available.
Comments:
Loans can be used for financing business construction, conversion, and modernization as well as for equipment, facilities, machinery, supplies, debt restructure, transfer of ownership, and working capital. Projects which create or save jobs have the highest priority. The borrower works with a lender, then the borrower and lender jointly apply for a loan guarantee. There is a one-time loan guarantee fee of 1% or 2% and an annual servicing fee (currently 0.25%).
Program Contact: (Primary Contact listed first.)