Business & Industry Guarantee Loan Program

SCKEDD as a part of its commitment to economic development packages B&I Guaranteed Loan applications on behalf of private lenders in its 14 county area of operations.  The B&I program is similar to the SBA’s 7(a) Guaranteed Loan Program, but eligible projects must be located in communities with populations of less than 50,000.  The major benefit to rural lenders involves the loan guarantee limits.  The B&I loan guarantee limits exceed the maximum limits of the SBA 7(a) program. 

 Eligibility

• Any legal entity
• There are no size restrictions

 Projects Financed

• Business and real estate acquisition
• Construction and improvements
• Purchase of machinery and equipment
• Working capital, inventory, accounts receivable
• Pollution control and abatement
• Business start-ups
• Refinancing under certain conditions

 Loan Amount

• Loan guarantees are limited to a maximum of $10 million per borrower, although RD may approve requests up to $25 million.
• 80% loan guarantee up to $5 million
• 70% over $5 million to $10 million
• 60% over $10 million to $25 million
• SCKEDD financing fee - up to 1% of the loan amount (paid by the applicant)

Interest Rate/Fees

• Determined by the private lender

 Repayment

• Working capital – 7 years
• Machinery and Equipment – 15 years (or useful life)
• Real estate – 30 years

 Collateral

• Usually the assets financed with the loan proceeds.  Personal and corporate guarantees are required.

 The B&I Guarantee Loan Program promotes economic development in rural communities.  The goals of the program are to create and maintain employment and improve a small business’ access to capital.  The B&I program is administered by the Rural Business-Cooperative Service of USDA-Rural Development.  Contact a SCKEDD representative to determine if your business is eligible for the B&I Guaranteed Loan Program.

 For more information, contact SCKEDD’s B&I Loan Packaging Department at (316) 262-7035 or visit our website at www.sckedd.org.