Frequently Asked Questions
What is a USDA Loan?
USDA Business Loans, are business loans guaranteed by the U.S. Department of Agriculture (USDA). These loans are made by lenders, such as banks or credit unions, to eligible businesses in rural areas. A portion of the loan is guaranteed by the USDA. The USDA comes with its own requirements and repayment terms. Generally speaking, you must be located in a rural area (not in a city or town with a population of more than 50,000), have a good credit history and exhibit sufficient cash flow to support the loan repayment, among other criteria. Our USDA loan experts will explain your loan options, help you determine the loan amount you need, and walk you through the entire process, from what you need to do to qualify through the loan application, loan decisioning and beyond.
Can I get a USDA loan for an LLC?
Yes. We help small businesses across rural America secure access to capital at reasonable rates, regardless of how ownership is structured.
Can I use a USDA loan to buy commercial property?
Yes. Commercial real estate purchase, development and improvements are all eligible. You can also use a USDA loan to convert, enlarge, modernize, develop or repair a business, and for agricultural processing facilities.
What is the difference between a USDA guaranteed loan and a USDA direct loan?
The primary difference is who funds the actual loan. With USDA direct loan, the USDA acts as the lender. Conversely, with the guaranteed loan program, private lenders such as credit unions and banks fund the loan while the USDA guarantees each loan against default.