The USDA has several advantageous, but not well understood, loan guarantee programs. Where applicable, these programs can be superior in rate and structure to SBA programs. The loans are originated and funded by banks and the USDA provides a guaranty to the originating bank. Loan proceeds can be used for ground-up construction, commercial real estate, machinery and equipment, refinance of existing debt, working capital, and acquisitions. Morewood Funding is experienced with the nuances of these programs and well-equipped to guide a business through the process.
Loan Benefits Include:
Loan amounts up to $25 million or $40 million per borrower (depending on the program)
Loan terms up to 40 years
No balloon payments - loans are fully amortized, with potential I/O periods
Flexible underwriting for start-ups and expansion
The Primary USDA Guarantee Programs are:
Business & Industry
Businesses start-up or expansion in rural areas - must be located in populations of less than 50k. Loan amounts up to $25mm.
Food Supply Chain
Businesses in the middle of the US food supply chain, e.g., food distribution, processing, and cold storage. No maximum population requirement – can be located anywhere. Loan amounts up to $40mm.
Rural Energy of America Program
Rural businesses and agricultural producers looking for energy efficiency improvements or renewable energy upgrades. Loan amounts up to $25mm.
Community Facilities
Essential community facilities such as healthcare, transportation, and public safety. Loan amounts up to $100mm.
Morewood Funding arranges financing for businesses. If you own or advise a business or project in need of capital, please call us at 917-561-7074 or email at Howard@MorewoodFunding.com