The B&I Loan Guarantee program guarantees loans made by eligible local lenders to businesses to benefit rural areas under 50,000 in population. Loans are made for improving, developing, or financing business and industry, creating jobs, and improving the economic and environmental climate in rural communities. This loan can be for fixed assets, working capital, and certain types of debt financing. Generally the maximum amount of a loan approvable at the State level is $5,000,000 and up to $15,000,000 at the National Office. The Secretary can approve up to $25,000,000. Interest rates are negotiated between the lender and the borrower and may be fixed or variable. The term may be up to seven years for working capital; useful life of equipment not to exceed fifteen years; and up to thirty years on real estate. Collateral will be considered along with the company history, management, repayment ability, equity, etc. A minimum of ten percent tangible balance sheet equity for existing businesses and twenty percent for new businesses is required.

For more detailed program information, contact the USDA Rural Development’s Bolivia office at (910) 253-4448 or via email paula.thrush@nc.usda.gov.