USDA Funding Procedure
The USDA offers several loan programs designed to support rural development projects. Spear Consultants specializes in two key programs that provide favorable terms for qualifying projects.
USDA Community Facilities (CF) Program
Program Purpose
Provides funding for essential community facilities in rural areas and towns.
Key Benefits
- Low fixed interest rates (2.25% - 3.5%)
- Long terms up to 40 years
- No balloon payments
- No prepayment penalties
- High loan-to-value ratio
Eligibility Requirements
- Public bodies
- Non-profit organizations
- Federally recognized tribes
- Located in areas with fewer than 20,000 residents
- Unable to obtain funding from commercial sources
USDA Business & Industry (B&I) Program
Program Purpose
Provides loan guarantees to businesses in rural areas to improve economic conditions and create jobs.
Key Benefits
- Competitive interest rates (2.5% - 3.75%)
- Terms up to 30 years for real estate
- Up to 15 years for equipment
- Up to 7 years for working capital
- Loan guarantees up to 80%
Eligibility Requirements
- For-profit businesses
- Non-profit organizations
- Cooperatives and public bodies
- Located in areas with fewer than 50,000 residents
- U.S. citizenship or permanent residency required
Typical USDA Funding Procedure
Step 1: Initial Consultation
Meet with Spear Consultants to discuss your project and determine eligibility for USDA funding programs.
Step 2: Feasibility Study
Complete a comprehensive feasibility study to demonstrate project viability and financial sustainability.
Step 3: Application Preparation
Prepare and submit the USDA loan application with all required documentation and supporting materials.
Step 4: USDA Review
USDA reviews the application, conducts site visits, and performs due diligence on the project.
Step 5: Funding Approval
Upon approval, USDA issues a Letter of Conditions outlining the terms of the loan.
Step 6: Closing and Disbursement
Complete closing requirements and begin receiving funds for your project.
How Spear Consultants Helps
Our Expertise in USDA Funding
- Determine project eligibility
- Prepare and submit application
- Conduct feasibility studies
- Coordinate with USDA representatives
- Guide through closing process