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Q What are the borrowers
benefits?
A: Government guarantee
usually at 80% helps banks to lend in rural areas,
lower down payment, up to a 30-year term, fully amortizing (no balloon),
flexibility to finance land, building, equipment, permanent working capital and to a limited extent crops, in-state authority,
can be used for investor properties, non-profits, combined with SBA loans, no maximum net worth.
Q What
is the programs history?
A: Established in the 70’s
to help lenders to fill the lending gap in rural areas. The program has evolved and had its biggest year ever in 2009.
Q How does it work?
A: A lender must approve the loan, the USDA offers a guarantee to the
lender. USDA is national, delivered on a State basis: see USDA.gov
Q Why have USDA loans been seen as difficult?”
A: Bank policy and processing
conforms to SBA policy, not USDA policy and most loan officers have only done a few, if any. As a result, many viable USDA loan requests can languish or fail without
thorough knowledge of USDA policy and start-to-finish coordination. Our innovative process identifies, manages and resolves issues for consistent results; please see ‘Getting
A Loan’ page.
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Q What are the benefits for Lenders?
A: Serve customers better and attract new ones
while reducing risk with an 80% Federal Guarantee. Retain and attract deposits while generating significant new fee income.
Please ask for our Lenders Benefits Analysis. Q What is the average loan size?
A: About $1.0 million, loans can go up to $25 million.
Q What businesses / properties qualify?
A: Owner-occupied,
investor and non-profits. Many types of businesses qualify: see our Recent Financings page.
Q What are the eligibility requirements?
A: A rural
location and minimum tangible net worth: other requirements apply. We resolve eligibility issues.
Q Does the USDA do loans for energy generation?
A: Yes, through
the REAP program, Rural Energy for America Program, and the B&I loan program.
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