USDA Loan Programs
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.
Community Facilities Program
Purpose
Provides funding for essential community facilities in rural areas and towns.
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
- Public bodies
- Non-profit organizations
- Federally recognized tribes
- Located in areas with fewer than 20,000 residents
- Unable to obtain funding from commercial sources
Spear Consultants' Role
- Determine project eligibility
- Prepare and submit application
- Conduct feasibility studies
- Coordinate with USDA representatives
- Guide through closing process
Business & Industry Program
Purpose
Provides loan guarantees to businesses in rural areas to improve economic conditions and create jobs.
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
- 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
Spear Consultants' Role
- Assess eligibility and structure deals
- Prepare comprehensive application packages
- Develop business plans and financial projections
- Coordinate with lenders and USDA
- Provide ongoing support through closing