USDA Business and Industry Guaranteed Loan Program
HomeTrust Bank is a national USDA Business and Industry (B&I) Lender, providing financing solutions to business owners with maximum loan amounts up to $25 million in rural areas including cities and towns with a population less than 50,000. The USDA B&I Loan Program may provide businesses that qualify for a higher loan amount and longer repayment terms.
- Up to 7 years for working capital.
- Up to 15 years for machinery and equipment (or useful life).
- Up to 30 years for commercial real estate (or useful life).
- All collateral must secure the entire loan and Borrower Equity requirements must be met.
- Bank ordered appraisal reports prepared by qualified appraisers are required on all property that will serve as collateral.
Borrower equity required:
- Minimum of 10% tangible balance sheet equity required for existing businesses.
- Minimum of 20% tangible balance sheet equity required for start- up businesses.
- Equity is calculated from GAAP compliant financial statements.
- Feasibility studies may be required.
Typical loan purposes include:
- Business and industrial acquisitions, construction, conversion, repair, expansion, modernization or development costs
- Purchase equipment, machinery or supplies
- Start-up costs and working capital
- Processing and marketing facilities
- Pollution control and abatement
Eligible borrower categories may include:
- Individuals, corporations, cooperatives, partnerships and other legal entities
- Public or private
- For-profit or non-profit
Eligible industries may include, but are not limited to:
- Assisted Living
- Auto Repair
- Gas Stations
- Insurance Agents
- Investment Advisors
- Medical & Dental
- Office Buildings1
- Professional Services
- Skilled Nursing
- Quick Lube
- Must be at least 51% owner occupied