The US Department of Agriculture (USDA) offers business and industry loan guarantees in California as an economic development funding source to enable commercial lenders to provide more affordable financing for businesses in eligible rural areas and small towns. The program reinforces the existing private credit structure by guaranteeing loans for rural businesses, enabling private lenders to extend more credit. There must be sufficient collateral to protect the interest of the lender and the agency.
Borrowers can be for-profit businesses, nonprofits and cooperatives, federally-recognized tribes, public bodies and individuals. Guaranteed loan funds may be used for business conversion, enlargement, repair, modernization or development; purchase and development of land, easements, rights-of-way, buildings or facilities; purchase of equipment, leasehold improvements, machinery, supplies or inventory; debt refinancing when new jobs will be created and other conditions are met; and business and industrial acquisitions when the loan will keep the business from closing and/or save or create jobs.
Contact RSG to guide you through the process of obtaining a loan.
Written by Dima Galkin, an Associate at RSG