Together, America Prospers

OneRD Guarantee Loan Initiative: 

Business & Industry Loan Guarantees 

What does this 

program do?

This program provides loan 

guarantees to commercial 

lenders for loans to eligible 

rural businesses.

What types 

of lenders 

can apply?

Lenders must have the legal 

authority, financial strength, and 

sufficient experience to operate 

a successful lending program. 

Examples include:

• Federal- and 

state-chartered banks

• Savings and loan associations

• Farm credit banks with direct 

lending authority

• Credit unions

Using the OneRD Guarantee Loan 

initiative (information is available at 

this link: https://go.usa.gov/xJnfQ) 

Rural Development will consider 

certain non-regulated lending 

institutions for approval, as well. 

Who can apply?

• For- or nonprofit businesses

• Cooperatives

• Federally-recognized Tribes 

(information is available at 

this link: https://go.usa.gov/xJnf6)

• Public bodies

• Individuals engaged — or proposing to 

engage — in an eligible rural business

What are the borrowing restrictions?

• Individual borrowers must be citizens 

of the United States, or reside in the 

U.S. after being legally admitted for 

permanent residence.

• Borrowers must demonstrate loan 

funds will remain in the U.S., and the 

facility being financed will create 

new - or save existing - jobs for rural 

U.S. residents.

What is considered an eligible area?

• Rural areas not in cities or towns with 

populations of more than 50,000, and 

adjacent urbanized areas

• A borrower’s headquarters can be 

based in a larger city, as long as the 

project, itself is in an eligible rural area

• Eligible lenders can be located 

anywhere in the U.S.

• Local and Regional Food System 

Initiative projects (information is 

available at this link: https://go.usa.

gov/xJnGX - PDF) can be funded in 

both rural and urban areas

• You can check eligible addresses 

for Business and Industry 

Loan Guarantees at this link: 

https://go.usa.gov/xJnGQ

How can guaranteed loan funds 

be used?

Examples of eligible uses include:

• Business development, growth, 

modernization, conversion, or repair

• Buy and develop land, buildings, 

and associated infrastructure for 

commercial or industrial use

• Buy and install machinery, equipment, 

supplies, and inventory

• Refinance debt to create cash flow 

and create jobs

• Acquire businesses or industries 

when the loan will maintain 

operations, and create or save jobs

Guaranteed loan funds cannot be 

used for: 

• Lines of credit

• Owner-occupied or rental housing

• Golf courses, or golf 

course infrastructure

• Racetracks or gambling facilities

• Churches or church-controlled 

organizations

• Fraternal organizations

• Lending, investment, 

or insurance companies

• Agricultural production 

(with certain exceptions)

• Payment or distribution to a 

beneficiary of a borrower, or to an 

individual or entity that will retain 

ownership interest in the borrower
OneRD Guarantee Loan Initiative: 

Business & Industry Loan Guarantees 

What are the interest rates and 

loan terms?

• Interest rates - which can be 

fixed or variable - are negotiated 

between the lender and borrower

• Variable interest rates cannot be 

adjusted more often than quarterly

• Loan terms cannot exceed 40 years

How do we get started?

• Interested borrowers work directly 

with lenders

• Lender-based applications are 

accepted year-round by field-based 

Rural Development staff

• You’ll find an alphabetical list 

of offices by state at this link: 

https://go.usa.gov/xJnHR

Who can answer questions?

See “How do we get started” 

for a link to a list of our stateand area-based USDA Rural 

Development offices.

What governs this program?

• Code of Federal Regulations 

7 CFR 5001, available at this link: 

https://go.usa.gov/xJn6a

• The Consolidated Farm and 

Rural Development Act, as 

amended, available at this link: 

https://go.usa.gov/xJn6B (PDF)

• 7 U.S.C. 1932, available at this link: 

https://go.usa.gov/xJn6n

Why does USDA Rural 

Development do this?

The Business and Industry Loan 

Guarantee program helps improve 

rural economic health by increasing 

access to business capital, allowing 

commercial lenders to offer affordable 

financing to eligible rural businesses.

NOTE: Because information is subject to change, always consult official program 

instructions or contact your local Rural Development office for help. A list is available 

at this link: https://go.usa.gov/xzSKb. You will find additional resources, forms, and 

program information at https://rd.usda.gov. USDA is an equal opportunity provider, 

employer, and lender.

July 2022