USDA Business and Industry Loan (B&I LOAN)
Guaranteed Loan Program

ECCDI as part of its mission statement to facilitate access to capital for small businesses, packages B&I Guaranteed Loan applications on behalf of private lenders. The main purpose of the B&I program is to create and save rural jobs and improve the economic and environmental climate of rural communities throughout the United States.

Benefits of the B&I Guaranteed Loan Program:
•  Higher loan amounts, less equity injection, lower interest rates and longer repayment terms.
•  Provides financial institutions the assurance of loan repayment with zero recourse to the borrower.
•  Provides stability to businesses to allow for expansion, diversity, job retention, and job creation in rural areas.

Projects Financed:
• Business and real estate acquisition
• Construction and improvements
• Purchase of machinery and equipment
• Working capital, accounts payable and inventory
• New and Emerging businesses
• Refinancing under certain conditions

Loan Amounts:
• Up to $10 Million
• 80% loan guarantee up to $5 Million
• 70% loan guarantee over $5 Million and up to $10 Million

Interest Rate:
• At lender’s discretion-negotiated strongly by ECCDI.

Term:
•  Lenders can offer up to 30 years for real estate; working capital and equipment between 7 and 15 years. No balloon payments permitted.

Collateral Position:
•  First position on assets being purchased or refinanced with loan proceeds. Assets outside of the business may be required to adequately secure the loan. Personal guarantees of all principals.

Fees:
• $1,500 application fee to ECCDI due upon return of application
• Fees negotiated by ECCDI on behalf of client with private lenders
• 2% of the guaranteed amount payable to USDA upon closing
• Processing fee due to ECCDI upon closing

If you would like more information regarding the USDA B&I program, please contact
us at 252-504-3996.