These loans are primarily for certain businesses that are rural based. The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. B&I loans are normally available in rural areas, which include all areas other than cities or towns of more than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns. Funds can be used for but not limited to: Business and Industrial Acquisitions, Business Conversions or modernization, Purchase of Equipment, or Purchase or Development of land.
Example: Because of the recent downturn in the economy, many banks and lending institutions have implemented a policy to only lend to metro areas. This leaves rural businesses with a tough time obtaining financing. This was the case with an Oregon based agricultural business that sold produce to many statewide grocery chains. They needed a loan to expand their facility since demand and production was up. The business owner was unsuccessful with the bank that had a branch in his area as the business’s geographical location was not large enough for the bank to lend the $6,000,000 the owner needed. Lending sources that specialized in B&I loans served as a perfect fit for the business owner’s funding scenario. The loan was funded about 2 months after being submitted for approval.
|Amount of loan:||$6,000,000|
|Total time to close:||2 Months|