Business & Industry CARES Act Program
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[September 16, 2020]
With USDA Rural Development’s Business &
Industry CARES Act Program, rural business and agricultural lenders
can partner with USDA to help support and revitalize the economic
infrastructure of rural communities impacted by the pandemic.
USDA has nearly $1 billion in loan guarantee
authority that must be used as working capital to prevent, prepare
for, or respond to the effects of the coronavirus pandemic. For the
first time, agricultural producers may access this program if they
are ineligible for financing from USDA’s Farm Service Agency.
If you are a lender who serves rural communities, you can access
these guarantees by working with your nearest USDA Rural Development
state office. Loan guarantees can be used to bolster the working
capital of an ag producer, help stabilize the local food supply
chain, get a small business operating again with new
social-distancing precautions in place, and many other scenarios.
The B&I CARES Act Program not only provides expanded eligibility for
agricultural producers but also offers a 90 percent guarantee for
loans. It sets the guarantee fee at two percent, modifies collateral
requirements, and extends the maximum term for working capital loans
to 10 years.
If you are a small business owner or agricultural producer needing
assistance to manage the impact of this economic disruption, a
USDA-backed loan guarantee may be an option to secure the working
capital you need to stay in operation and move forward.
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Please contact the local ag or business lender of
your choice and ask them about a USDA Rural Development Business and
Industry CARES Act loan guarantee.
Please note: This program may only be used to support
rural businesses and agricultural producers that were in operation
on February 15, 2020
If you are a current B&I Program borrower needing assistance due to
Through September 30, 2020, if you have a Business & Industry
(non-CARES Act) loan guaranteed by USDA, your lender may approve up
to a six-month deferral without prior approval from USDA. The Agency
will also allow you to access emergency financial resources provided
by the Small Business Administration without prior approval.
For the latest information on USDA Rural Development’s response to
COVID-19, visit rd.usda.gov/coronavirus or via Twitter @usdaRD.
[USDA Rural Development]