USDA Business Loans
Whether you’re a business proprietor, nonprofit leader, or farm/ranch owner, there’s a USDA business loan program for you.
Types of USDA Business Loans
At Greater Commercial Lending, we give businesses in rural communities across America access to the capital they need to operate efficiently and grow their business. United States Department of Agriculture (USDA) programs target both for-profit and nonprofit entities, individuals engaged in or creating a business cooperative, public bodies, and Federally recognized Tribes. We have a knowledgeable team of commercial lending specialists focused solely on USDA commercial loans. Our team will help you understand your options and navigate both short and long-term financing solutions.
There are several types of USDA business loans. We can help you find the right loan option to fit your specific needs.
USDA OneRD Guarantee Loan Initiative
This USDA rural development loan program includes four main business loan types that have a standard set of requirements, processes, and forms.
USDA Business & Industry (B&I) Loans
Buy or expand a business, finance improvements, equipment, real estate, augment working capital, or refinance debt.
USDA Rural Energy for America Program (REAP) Loans
Implement renewable energy systems, make energy efficiency upgrades, or install new, energy-efficient equipment.
USDA Community Facilities (CF) Loans
Loans for public bodies, Federally-recognized tribes, and nonprofits to develop infrastructure and services essential to individuals and businesses in rural areas.
USDA Water & Waste Disposal (WWD) Loans
Improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas.
USDA Farm Service Agency (FSA) Guaranteed Loans
USDA farm loans are available to America’s family farms that help fuel our nation with the livestock and crops it needs.
USDA FSA Guaranteed Loans
From purchasing farmland and improving buildings, to buying livestock and insurance, the USDA FSA Guaranteed Loan Program is available to help family farms and ranches succeed and grow.
How Can You Use a USDA Business Loan?
Whether you’re just getting started or gearing up for another expansion, we give businesses in eligible rural areas access to loans from the USDA that feature flexible payment terms and affordable interest rates.
Choose the USDA loan program that addresses your immediate business needs, funds your short-term requirements or supports your long-term goals.
Real Estate Financing
Buy an existing business, add square footage, construct an owner user building or purchase real estate to occupy.
Energy Efficiency Projects
Implement renewable energy systems, make energy efficiency upgrades or install new, energy-efficient equipment.
Equipment Financing
Get the equipment you need to replace older assets or expand your operations with financing at reasonable rates.
Inventory Purchasing
Secure financing to purchase the inventory you need to meet near-term and longer-term demand.
Working Capital
Obtain a term loan to infuse permanent working capital into your business to improve cash flow.
Is a USDA Business Loan Right for My Company?
USDA loans are not just for agriculture. As one of the nation’s top USDA lenders, we help rural businesses and nonprofit organizations across America reach their potential and serve their communities with pride.
Small Businesses in Rural Areas
The USDA can help you operate, expand and grow your business. USDA business loans are available for a wide variety of needs, from working capital to the purchase of existing businesses, commercial real estate, equipment, inventory, renewable energy initiatives, energy efficiency improvements to existing infrastructure and equipment, and more. Loans are also available for debt refinancing to improve cash flow and create or save jobs. With reasonable terms and competitive interest rates, there is a USDA loan for your small business at every stage of growth.
Owner-Operated Farms and Ranches
USDA loans offer farmers and ranchers in rural areas the ability to finance their current operations and expand as the opportunity arises. USDA loans are available for machinery, equipment, supplies and integrated agricultural production and processing facilities, as well as the purchase and improvement of commercial real estate. Working capital loans and debt refinancing are also available.
Food Supply Chain
USDA loans are available to provide favorable financing to key players that help feed America. Funds are available to help finance food systems projects, from a new business start-up to expanding activities for established companies.
Nonprofit Organizations
The USDA offers nonprofits a portfolio of loans similar to those offered to for-profit small businesses. USDA loans can help nonprofits address working capital needs, buy or improve buildings, and purchase equipment and supplies, providing access to capital without exorbitant fees.
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Frequently Asked Questions
About USDA business loans
What is a USDA business loan?
USDA commercial loans are business loans guaranteed by the U.S. Department of Agriculture (USDA). These loans are made by lenders, such as banks or credit unions, to eligible businesses in rural areas. A portion of the loan is guaranteed by the USDA. GCL is a credit organization that utilizes partner banks and credit unions to provide access to financing through USDA loan programs.
What businesses qualify for a USDA business loan?
There are a variety of USDA loans for small businesses, farms, ranches, and nonprofits, each of which comes with its own requirements and repayment terms. Generally speaking, the business or project must be located in a rural area, have a good credit history, and exhibit sufficient cash flow to support loan repayment, among other criteria. Our USDA loan experts will explain your loan options, help you determine the loan amount you need, and walk you through the entire process, from what you need to do to qualify through the loan application, loan decisioning, and beyond.
What is considered an eligible rural area for a USDA business loan?
The USDA classifies any location with a population not exceeding 50,000 residents as a rural area that qualifies. Alternatively, a company can meet the eligibility criteria if its central office is in a city or town above the population limit, yet it is pursuing financial support for a project located in another designated rural area.
How much can I borrow with a USDA business loan?
Loan amounts with a USDA business loan vary per business and loan product. Typically, most USDA business loans range from $200,000 to $5 million, and do not exceed more than $25 million.
What are the interest rates for a USDA business loan?
Interest rates for USDA business loans vary by loan product and are dependent on each business’s financing needs. A GCL USDA loan expert can help you understand USDA business loan interest rates and guide you toward the best choice for your business.
Can I get a USDA business loan for an LLC?
Yes. We help small businesses across rural America secure access to capital at reasonable rates, regardless of how ownership is structured.
Can I use a USDA business loan to buy commercial property?
Yes. Commercial real estate purchase, development, and improvements are all eligible. You can also use a USDA loan to convert, enlarge, modernize, develop, or repair a business, and for agricultural processing facilities.
What is the difference between a USDA guaranteed business loan and a USDA direct business loan?
The primary difference is who funds the actual loan. With the USDA direct loan, the USDA acts as the lender. Conversely, with the guaranteed loan program, private lenders such as credit unions and banks fund the loan while the USDA guarantees each loan against default.