Cultivating Your Success | FSA Loans

We understands that and farmers play a critical role in their communities. These businesses are often the cornerstones of their communities, helping boost the economy and provide critical jobs. We appreciate the hard work your rural business does, and that's why we work with you and the US Department of Agriculture (USDA) to secure funding for your rural business. We work on your behalf to secure the money you need to grow and continue to help your community enjoy sustainable success. Using our expertise, we’ll save you time and increase your odds of approval since we identify the best options designed to get the funds you need.

USDA Business Loan 101

USDA business loans help America’s rural communities thrive. These loans are government-backed and offer up to $25 million in capital for rural businesses and farms to use for various needs. USDA business loans especially champion job creation in small communities and are available to non-profit, for-profit, government, and tribal entities. Government backing for these loans also means that it can be easier to be approved for compared to traditional business loans.

Types of USDA Business Loans

Our mission is to help rural communities build a culture of self-sufficiency and sustainability. With this in mind, we walk you through the entire loan process.  
Different USDA Loan types include:

Business & Industry Program (B&I)

The B&I loan program is the USDA’s flagship program targeted at creating jobs and stimulating the economy in rural communities. Eligible businesses can apply for up to $25 million in capital.

Rural Energy for America Program (REAP)

REAP offers guaranteed financing to rural businesses or agricultural producers of up to $25 million for renewable energy systems or to make energy efficiency improvements.

Farm Services Agency Programs (FSA)

The FSA’s Guaranteed Farm Loan programs help farmers and ranchers obtain financing from lenders to buy farmland or finance agricultural production, offering up to $1,825,000.

Community Facilities Program (CF)

The CF Loan Guarantee Program helps develop facilities that provide an essential service to their local rural community of 20,000 inhabitants or less, offering up to $100 million.

SBA Business Loans vs. USDA B&I Loans

The USDA Business and Industry loan program is geared towards fostering employment in rural America. The program is not limited to farmers, farming and agricultural-related businesses; these funds may be used to develop businesses if the property is located in a rural town of <50,000 residents.

Key differences between the USDA B&I loan and SBA 7a loan programs:

Loan Attributes

USDA Business and Industry Loans

SBA Business Loans

Maximum Loan Size

$25 Million

$5 Million

Minimum Loan Size

$2 Million*

No Minimum, but commonly no less than $30,000

Geographic Requirements

Rural America & US Territories

No Restricted Geographic Area

Interest Rate Estimates

WSJ + 1-3%

SBA Prime Rate based Rate

Origination Fees


Not Allowed

Guaranteed Portion

80% Max

85% Max

Security of Guarantee


Can Be Negotiated

Speed of Government Processing

4-12 weeks

4-6 Weeks


1:1 Discounted

No Regulatory Requirement


10%, 20%, 25% Tangible Net Worth

No Regulatory Requirement

Interest Rates

Lender Determined

Lender Determined

Average Default Rate



Prepayment Penalty

10 Year Decline or Negotiated

Fixed at 5/3/1

Repayment Terms

Maximum of 30 Years

Maximum of 25 Years

Owner Occupancy

No Restrictions

Owner Required to Occupy the Property

FSA Loans for Businesses

There are two many benefits to USDA loans that make them an attractive choice compared to traditional loans.

Low Interest Rates

Creditworthiness does factor into your loan interest rates, but USDA loans still have some of the lowest rates on the market.

Extended Repayment Terms

USDA loans make it easier for rural businesses to grow thanks to flexible repayment terms. Depending on what you’re using the funds for, payment plans can range from 7 to 30 years.


What is a USDA loan for business?

A USDA loan is a business loan that is insured by the U.S. Department of Agriculture. These loans are given to qualified enterprises in rural areas through partner lenders. Despite being specifically designed for rural enterprises, USDA business loans are comparable to Small Business Administration (SBA) loans. It's a fantastic resource for long-term affordable financing for rural businesses.

What is the interest rate on a USDA-guaranteed loan?  

The USDA ensures that the interest rate is competitive with other loans of a comparable nature. Lenders determine the interest rates for USDA business loans. Inter estrates can be either fixed or variable, or they can be both.

What is the downside of a USDA loan?

The USDA loan has disadvantages despite how amazing it is. The biggest ones are the financial restraints and geographic limitations. Nowhere can you use a USDA loan to buy a house. You must meet their income requirements, which take into account the income of your entire household, and you must purchase a property in an area that qualifies as rural.

Is SBA part of the USDA?                    

SBA is nota part of USDA. The SBA 7a Loan Program and the USDA Business Loan Programs are fairly similar, and both of them can be a great option for many businesses.

Do USDA loans have closing costs?

10-20% down payment is generally required for USDA business loans. Also, there are closing costs. The fees and charges associated with settling a USDA business loan are included in your closing costs. Depending on where you live, you'll need to pay somewhere between 1 and 3+ per cent of the loan amount in closing costs on average.

Can you getcash back on a USDA business loan?

You cannot get cashback during a USDA business loan closing. If you need a working capital product, there are other programs to secure working capital in addition to USDA loan.

USDA rural development Loan Program

We are proud to offer FSA loans, USDA BI loan or USDA B&I loan program to businesses nationwide. These USDA business loan programs are designed to help farmers, ranchers and other rural businesses with the purchase, construction, or improvement of farmland and buildings, including commercial real estate that is to be used for agribusiness or rural business purposes. Contact us today to learn more about how we can help you take advantage of these great programs.