Loan Program Overview

The rural reality is harsh but true: less capital is available for rural areas than urban metros. The entrepreneurs, developers, and job creators in these communities have long been at a capital disadvantage – until now. The USDA Rural Development Program is designed to strengthen the economics and bolster the quality of life in rural America.

The only problem? Few lenders know how to access it, and even fewer know how to leverage the unique program benefits to create better outcomes for their Borrowers. We do.

Learn More about USDA Business Loans

A number of years ago, the USDA crafted a novel solution to the capital challenges experienced by rural employers and entrepreneurs. The department best known for its regulation and support of agriculture devised a series of plans to strengthen the economies and bolster the quality of life in rural areas. The USDA addressed the underlying concerns of traditional lenders by participating as a guarantor and ultimately easing access to capital in rural markets.

Today, USDA Rural Development guarantees a $234 billion portfolio of loans – a massive portfolio few are aware of. The program comprises five loan programs, including Rural Energy for America, Community Facilities, Business & Industry, and Food Supply Chain loan programs.

USDA Rural Development Program Snapshot

Qualifying Businesses Max Population Max Loan Amount Annual USDA Guarantee Fee
Business & Industry Small to Mid-Sized Rural Businesses 50,000 $25 MM Yes
Community Facilities Colleges, Schools, Hospitals, Parks, Daycare, Assisted Living, etc. 50,000 $100 MM Yes
Rural Energy for America Solar/Wind/Energy Developer, Anaerobic Digesters 50,000 $25 MM Yes
Food Supply Chain Food Packagers, Processors, Transporters, etc. No Limit $40 MM No

Defining Rural: 97% of America

The vast majority of the United States is eligible for these special financings. First National Bank of Oklahoma originates USDA Rural Development loans across the United States.

Does my Location Qualify?

Sign up for our newsletter to stay up to speed on current opportunities within
USDA Rural Development

Join over 18,500 others who have subscribed to our newsletter.


    Business & Industry

    The business owners we serve are often surprised to hear that the USDA supports more than agriculture alone. In fact, the USDA Business & Industry loan program has nothing to do with agriculture at all.

    The USDA B&I loan program empowers entrepreneurs and entities of all sizes with loans of up to $25MM, so long as they operate in communities of 50,000 or fewer.

    Does my Location Qualify? Schedule a meeting with our USDA specialist

    Eligible Business Industries

    Virtually all commercial businesses located in qualifying areas are eligible other than farming, ranching, and housing, including:

    For-Profit Businesses

    Nonprofits

    Family-Owned

    Acquisitions

    Startups

    Refinance

    Manufacturing

    Retail

    Entertainment

    Hospitality

    Construction

    Commercial Real Estate

    Defining Rural: 97% of America

    Our customers are often surprised to hear that we only lend to rural businesses — and even more surprised to discover they’ve actually been operating one. 97% of the geographic USA is considered rural. Find out if your address qualifies in 10 seconds.

    Does my Location Qualify?

    Sign up for our newsletter to stay up to speed on current opportunities within
    USDA Rural Development

    Join over 18,500 others who have subscribed to our newsletter.


      Community Facilities

      USDA Community Facilities loans are designed for projects that provide essential services to rural communities, such as healthcare, childcare, education, public gatherings, utilities, and food distribution, amongst others. If a community is in need of a certain facility, chances are a Community Facilities loan will be the right fit to finance its construction or improvement.

      Eligible Borrowers

      Nonprofit Organizations

      Public Bodies

      Indian Tribes or Federal & State Reservations

      Federally Recognized Tribes

      Examples of Essential Community Facilities

      Healthcare & Hospitals

      Fire, Rescue & Public Safety

      Educational & Social

      Bridges, Roads & Airports

      Telecom Equipment

      Dams, Levees, & Reservoirs

      Defining Rural: 97% of America

      The vast majority of the United States is eligible for these special financings. First National Bank of Oklahoma originates USDA Rural Development loans across the United States.

      Does my Location Qualify?

      Sign up for our newsletter to stay up to speed on current opportunities within
      USDA Rural Development

      Join over 18,500 others who have subscribed to our newsletter.


        Food Supply Chain

        Feeding our nation requires more than just farmers and ranchers. It also requires processors, packagers, logistics providers, and food storage facilities. With this complex supply chain in mind, the USDA launched its new guaranteed lending program for Food Supply Chain participants operating in the “middle of the food supply chain” in both urban and rural markets.

        Like the USDA’s other programs, the Food Supply Chain program offers competitive financing and generous terms to Borrowers. Unlike the other programs, this program has no USDA guarantee fee and can fund loans up to $40 million. Urban borrowers are eligible for this special financing!

        Schedule a meeting with our USDA specialist

        Eligible Borrowers

        Meat, Poultry & Seafood

        Food Packagers

        Cold Storage Facilities

        Wholesalers

        Distributors

        Trucking

        Sign up for our newsletter to stay up to speed on current opportunities within
        USDA Rural Development

        Join over 18,500 others who have subscribed to our newsletter.


          Renewable Energy & Solar

          Energy is expensive. But replacing or improving energy inefficient equipment is expensive too. That’s why the USDA enacted the Rural Energy for America (REAP) program to provide government guaranteed loans to agricultural producers and rural small businesses to upgrade, replace, or construct energy efficient systems. Saving on energy costs for your small business just got easier!

          Schedule a meeting with our USDA specialist

          Eligible Uses of Funds

          RENEWABLE ENERGY SYSTMES

          Biomass

          Geothermal

          Hydropower

          Hydrogen

          Wind Generation

          Solar Generation

          Ocean Gerneration

          ENERGY EFFICIENCY IMPROVEMENTS

          HVAC

          Insulation

          Lighting

          Cooling & Refrigeration

          Doors & Windows

          Pumps for Sprinkler Pivots

          Diesel to Electric Irrigation Motor

          Defining Rural: 97% of America

          The vast majority of the United States is eligible for these special financings. First National Bank of Oklahoma originates USDA Rural Development loans across the United States.

          Does my Location Qualify?

          Sign up for our newsletter to stay up to speed on current opportunities within
          USDA Rural Development

          Join over 18,500 others who have subscribed to our newsletter.


            Case Studies

            First National Bank of Oklahoma’s team of experts has originated USDA guaranteed loans across the United States for a variety of different use cases. See a small snapshot of our closed loans below.

            Case Study #1

            First National Bank of Oklahoma recently financed a USDA Business & Industry guaranteed loan for a multi-generational family owned sod farm in Oklahoma. Loan proceeds were used to refinance existing debt and to purchase a new state-of-the-art cutting machine. This Borrower was attracted to this special financing program due to its long term, no balloon loan structure and semi-annual interest payments that coincide with seasonal cash flow. By closing this financing, the Borrower was able to realize approximately $80,000 of reduced debt service payments annually.

            Case Study #2

            First National Bank of Oklahoma recently originated another USDA Business & Industry guaranteed loan for a real estate developer in rural Oklahoma. The Borrower, a seasoned industry veteran, was able to identify a tenant during its feasibility period, increasing the underlying value of the property relative to the contract price. First National Bank of Oklahoma won the business in a widely marketed loan placement process by proposing a creative loan structure whereby the Borrower was able to leverage the full value of its freshly signed lease, maximizing loan proceeds compared to competing lenders. The Borrower was also attracted to the construction-to-perm loan structure that will not require a second closing at construction completion.

            Case Study #3

            First National Bank of Oklahoma recently financed a USDA Business & Industry guaranteed loan for a value-add RV park project in Missouri for a returning borrower. The loan was structured in two tranches, with a larger tranche originated at closing to be followed by a second tranche once the project achieves a defined debt service coverage ratio. This Borrower was drawn to this special financing program due to its long term, no-balloon loan structure and the creative tranching feature to maximize loan proceeds. This financing will completely rehabilitate a 50+ year old RV park located proximate to historic Route 66.