Business and Industry Loan Guarantee Program


Administered by the U.S. Dept. of Agriculture, this program guarantees loans by eligible local lenders to businesses to benefit rural areas. Its primary purpose is to create and maintain employment and improve the economic and environmental climate in these areas.

The program typically guarantees losses up to 80% of the original loan amount to the local lender. The inability to obtain other funding by the borrower is not a requirement.


Repayment terms vary from 7 years for working capital to 30 years for business real estate, with interest rates be either fixed or variable. A minimum of 10% equity is required, 20% for new businesses.