The USDA Business and Innovation Program: What is it and which are the top lenders?
The US Department of Agriculture runs a number of initiatives aimed at supporting businesses in rural areas of America. The rationale is that by increasing their access to capital, these businesses grow, creating and retaining jobs and enhancing the broader economy of these areas.
The Business and Innovation (B&I) is no exception, offering loan guarantees to commercial lenders so they can lend cash to eligible rural businesses.
You can find out more about the B& program and required eligibility here, but if you already know that your business is eligible for the program, which lender do you turn to? Fortunately, we’ve collated a list of the top lenders so you don’t have to.
Top lenders for USDA Business and Innovation guaranteed loans:
1. Greater Nevada Credit Union
Greater Nevada Credit Union offers USDA supported loans under both the B&I and REAP programs and cite better terms and rates as just some of the benefits of a USDA business loan. GNCU aims its support at farmers, ranchers, non-profits and more.
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2. X-Caliber Rural Capital
X-Caliber Rural Capital (XRC) is dedicated to providing funding to support the health and development of rural areas.
The loans they offer through the USDA’s OneRD Guarantee Loan Initiative include:
- Business and Industry Guaranteed Loan Program (B&I)
- Rural Energy for America Guaranteed Loan Program (REAP)
- Community Facilities Guaranteed Loan Program (CF)
- Water and Waste Disposal Guaranteed Loan Program (WEP)
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3. Live Oak Banking Company
Live Oak also supports a number of the programs under the USDA Guarantee Initiative, including:
- Business and Industry Guaranteed Loan Program (B&I)
- Rural Energy for America Guaranteed Loan Program (REAP)
- Community Facilities Guaranteed Loan Program (CF)
- Water and Waste Disposal Guaranteed Loan Program (WEP)
- USDA 9003 Program
Live Oak is committed to supporting rural America with flexible loan options, deep knowledge of the various USDA loan programs and a commitment to exceptional customer service.
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4. North Avenue Capital, LLC
North Avenue Capital defines its customers as innovative entrepreneurs, discerning business owners and generous employers. Businesses that typical lenders can’t understand.
The lender prides itself on serving 97% of America and its USDA loans start from $2m.
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5. Pathward, National Association
As of February 2023, Pathward was recognized by the USDA as the number one lender for rural development projects.
The lender offers a variety of loans under USDA-backed programs, including the B&I and REAP initiatives.
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6. Cogent Bank
Cogent Bank offers both USDA and Small Business Administration (SBA) loans and focuses on the following use cases:
- Business modernization, development or repair
- Commercial real estate purchase, development or improvement
- Machinery, equipment, supplies or inventory purchase(s)
- Working capital
- Integrated agriculture production or processing facilities
- Debt refinancing when it improves cash flow and creates jobs
- Business acquisition when the loan will create or save jobs
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Still not sure where to start? Get in touch with one of our lending experts, who will be happy to help guide you on your growth journey.
