Stakeholder Announcement
USDA Increases Guarantee for Business & Industry Loan to 85%
Applications are Currently Being Accepted for New Projects
Washington, D.C., March 27, 2026 – The U.S. Department of Agriculture today announced that it has increased the percentage of its loan guarantee in the Rural Development Business & Industry (B&I) Guaranteed Loan program from 80% to 85% for projects that are under $5 million.
This percentage increase will apply to all guaranteed loans obligated in fiscal year (FY) 2026 unless precluded by a subsequent FY 2026 appropriation.
Through the B&I program, Rural Development makes loan guarantees to participating commercial lenders for loans to eligible rural businesses. Businesses must be located in rural areas with populations of less than 50,000; however, the business’ headquarters may be based in a larger city, as long as the project itself is in an eligible rural area. Eligible lenders can be located anywhere in the U.S.
Eligible entities for B&I loans include for-profit or non-profit businesses, cooperatives, federally recognized Tribes, public bodies, and individuals engaged or proposing to engage in a business. Eligible uses include (but are not limited to):
- Business conversion, enlargement, repair, modernization, or development.
- The purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties.
- The purchase and installation of machinery and equipment, supplies or inventory.
- Debt refinancing (with some limitations), when such refinancing improves cash flow and creates jobs.
- Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.
Applications are being accepted now and throughout the year on a rolling basis. For more information on the B&I Guaranteed Loan Program, or to become an approved lender, contact your local Rural Development Office. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
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