Among the many capital opportunities available, there are a number that lack an understanding that often times start from the ground level.
Myth: USDA lending is meant solely for agricultural businesses.
Fact: The USDA Rural Development “forges partnerships with rural communities, funding projects that bring housing, community facilities, business guarantees, utilities and other services to rural America (usda.gov).”
For business owners in rural areas*, it’s important to know there are programs made specifically for them—like the USDA Business and Industry (B&I) Loan Program. This program focuses directly on rural areas, and was designed for small- to medium-sized businesses that look to provide employment opportunities to the community. The presence of businesses in rural areas not only strengthens the community, but ultimately stimulates economic growth.
Regardless of whether the person owns a for- or not-for-profit business, the USDA B&I Loan Program can provide a maximum $10MM loan amount to be used in various ways which would increase the business’s success. Amongst other possibilities, with the B&I loan, business owners are able to purchase land and buildings, make business and industry acquisitions, modernize the look and develop non-residential spaces. They can also purchase necessary equipment, machinery, supplies or inventory for your business.
The benefits of the B&I loan come not only to the business owner, but to the community in which it supports, and who supports it. Increase in employment, economic stimulation, and stronger community ties are only some of the benefits that come from owning a business in a rural area. Local business owners know what their area needs and how they can help it improve.
Owning a business is complicated enough without having to worry about fitting into the requirements of conventional bank loans. Programs like the B&I Loan Program are created to support business owners as they develop, and benefit the community as a whole.
*Are you a rural area?
Any area, city or town with a population of less than 50,000 inhabitants (and the urbanized area of that city or town) is considered “rural,” and is eligible for the program. A population of less than 10,000 is necessary for not-for-profit entities, such as charter schools.
Article provided by:
Bernie Dandridge, a SBA/USDA Business Development Specialist at Florida Capital Bank