Loan funds cannot be used for projects located in cities or towns with population of 50,000 or more and not contiguous to an urbanized area of 50,000 of more.
Structure
- USDA 80% guarantee.
- Varies - depending on the use of proceeds.
- 10% - 25% balance sheet equity required.
- Fully amortizing.
- Eligible businesses include for-profit and not-for-profit entities.
Term
- Up to 40 years
Rates
- Normally variable from quarterly to 5-year resets.
Collateral
- First lien position on assets acquired or financed with loan proceeds.
- Personal and corporate guarantees required.
- Life insurance may be required.
