The United States Department of Agriculture (USDA) represents agriculture and rural communities throughout the United States. It partners with private and community-based groups and leading financial institutions to offer significant capital for rural enterprises as part of its purpose to develop local economies and create jobs.
Loans of up to $25 million are available through various secure, government-backed programs—loans that Royale Capital can arrange on your behalf. This money helps rural enterprises and job growth in the short term while ensuring self-sufficiency in local communities for future generations.
The following are some of the benefits of an SBA loan from Royale Capital:
- We only work with the best USDA lenders in the country.
- Rates are lower than the market for the duration of the loan (generally 3-6 percent)
- Up to $25 million in funding is available.
- Repayment lengths of up to 25 years are available.
- Ideal for a wide range of applications, including working capital, refinancing, land acquisition, farming and ranching, and community amenities.
With four primary loan programs to choose from, we will match your company with the most appropriate capital at competitive rates and terms.
- The USDA B&I loan program is the USDA's flagship program, helping generate jobs and promote rural economies by providing small businesses with the financing of up to $25 million.
- REAP offers up to $25 million in guaranteed finance to rural companies or agricultural producers for renewable energy installations or energy efficiency upgrades.
- The FSA's Guaranteed Farm Loan programs assist farmers and ranchers in obtaining lender funding to purchase farmland or finance agricultural output.
- The CF Loan Guarantee Program was created to assist in developing facilities that provide a vital service to their local rural community of 20,000 people or less.
Business and Industry Program
This program backs you financially and gives technical assistance to enable business formation and development. This program collaborates with public and private communities linked with financial institutions that assist you financially and extend technical assistance to rural businesses.
This program aids in acquiring capital, equipment, land, employee training, and entrepreneurial skills that can benefit in starting and growing a business. These Business Programs also favor the formation and preservation of quality employments in rural regions.
Individuals, cooperatives, farmers, ranchers, public entities, non-profit corporations, Native American Tribes, and private sector companies present in rural localities are given loans, loan guarantees, and grants to run their businesses. The financial resources that this Business Program provides are usually leveraged with other public and private lenders that are credited, such as Royale Capital.
The funding provided through these sources is intended to enhance the quality of life of rural areas by improving economic opportunities and ensuring self-sustainability for future generations.
Rural Energy for America Program
This program helps give guaranteed loan financing and grant assistance to agricultural producers and small businesses in rural areas for renewable energy systems or establish energy efficiency improvements. Agricultural producers are also encouraged to register for new energy-efficient equipment and new system loans to produce agricultural items and processing.
Agricultural producers who have at least half of their gross income generating from agricultural operations can apply for this program. Small businesses in rural areas that are eligible are also encouraged to avail the facilities provided through this program.
It should be noted that individual borrowers are supposed to be citizens of the United States or must reside in the United States after being legally admitted for permanent residence. In addition to this restriction, another important element to keep in mind is that private-entity borrowers are required to demonstrate that the loan funds being acquired by them will remain in the United States. Otherwise, they will not be eligible for loan guarantees.
Farm Services Agency Programs
This program aids farmers and ranchers to acquire financial support from lenders to purchase farmland or finance their agricultural production.
The Farm Service Agency (FSA) offers direct and guaranteed loans to beginning farmers and ranchers who cannot acquire financing from commercial credit sources through the Farm Loan Programs (FLP). Farms acquired by the FSA are sold at market value, with a preference for beginning farmers and ranchers.
The EERB works hard to guarantee that the farms that the FSA obtains in inventory do not negatively influence the environment or the public's health and safety. The FSA 851 Environmental Risk Survey form is the primary environmental risk management tool for FSA lending procedures and land management practices.
This form is used to conduct a Phase I Environmental Site Assessment (ESA). Potentially hazardous waste or environmental problems will be exposed if this form is thoroughly completed, and appropriate actions will be taken to rectify them.
Community Facilities Program
This initiative provides low-cost support for the development of critical community amenities in rural locations. A facility that offers an essential service to the local community for the orderly development of the community in a predominantly rural area is described as an essential community facility and does not include private, commercial, or business operations.
Borrowers who are eligible include:
- Governmental agencies
- Non-profit organizations that are based in the community
- Tribes with federal recognition
This program is available to rural regions, including cities, villages, townships, municipalities, and Federally Recognized Tribal Lands, with fewer than 20,000 persons, according to the most recent U.S. Census data.
Funds can be used to buy, build, or improve vital community facilities and buy equipment and pay for project-related expenses.
The following are some examples of critical community facilities:
- Hospitals, medical clinics, dental clinics, nursing homes, and assisted living facilities are examples of healthcare facilities.
- Town halls, courthouses, airport hangars, and roadway upgrades are examples of public amenities.
- Childcare centers, community centers, fairs, and transitional housing are examples of community support services.
- Fire departments, police stations, jails, police vehicles, fire engines, and public works vehicles or equipment are examples of public safety services.
- Museums, libraries, and private schools provide educational services.
- Telemedicine and distant learning equipment are examples of utility services.
- Community gardens, food pantries, community kitchens, food banks, food hubs, and greenhouses are examples of local food systems.