Dec 29, 2021
Do you have a great business idea and opportunity that requires you to take some quick action? Well, one of the first things that you would need is line up financing options to meet your business growth plans. Now there are several options in which you can finance your business idea but among all the other financing options, the one you should consider opting for is a United States Department of Agriculture (USDA) rural development business loan.
These kinds of business loans that are backed by the US federal government through US Department of Agriculture tend to feature much better pricing and terms for borrowers like you than other funding options. As the name suggests, the USDA rural development business loan program is only for businesses that are located in rural areas. The primary purpose of this program is to promote economic development and create more jobs in rural America. So, if you are not considering taking advantage of a USDA rural development loan, you are definitely missing out on a fairly good financing option for your business project needs. You can get in touch with a lender from any of the participating banks, who can help you get started by reviewing your business program, goals of the project in the coming years, and financing options.
But if you are thinking of obtaining this rural development loan for your project, there are a few questions that you need to ask first. Some of those questions are:
Like most of the people, even you might be surprised to find out what exactly qualifies as rural. According to the USDA, a rural area is defined as any specific area, other than a town or city that has a population of more than 50,000 inhabitants, and the urbanized area adjacent or contagious to such a town or city. So, make sure that you determine if your project is eligible or not to claim USDA rural development business loan before applying for it.
First and foremost, the individual borrowers must be citizens of the United States or reside in the country after they have been legally admitted for permanent residence. When it comes to private borrowers, they should be able to demonstrate that the loan funds would remain in the United States only and the facility that is being financed will be creating new, or save existing jobs for rural residents.
These were just a couple of important questions that you should be cleared about before applying for a USDA rural development loan for your rural business project. As mentioned earlier, you can learn more about this financing option by getting in touch with a professional lender. These business lending professionals would consult with you about your rural business project needs, understand your objectives, and help you find the financial support required for the project.
Reach out to us and we can discuss in detail how rural development loans might be the best choice for your business growth plans.