The U.S. Department of Agriculture (USDA) offers rural business financing to help businesses in rural areas create jobs. A USDA business and industry loan guarantee can help you secure a rural business expansion loan that you could use for buying commercial real estate, equipment, as a source of working capital, business acquisitions, to modernize your operations, and many other business needs. A USDA business loan offers more competitive interest rates and longer repayment terms than conventional business loans.
USDA Business and Industry Loans in Florida
USDA B&I loans in Florida can be used for many types of businesses, not just farming and ranching. These loans are available for businesses within certain census tracts.
Business and Industry Loan Guarantees (B&I)
Business and Industry Loan Guarantees (B&I) are available for rural businesses that need to enlarge and modernize. These loans can be used to buy commercial real estate, machinery, and supplies. A B&I loan can also be used to refinance your business debts, as long as it improves your cash flow and creates jobs.
Rural Business Development Grants (RBDG)
Rural Business Development Grants (RBDG) can be used by public bodies, such as cities, special-purpose districts, nonprofits, and Native American tribes that have less than 50 workers and less than $1 million in gross revenue. Both business opportunity grants and business enterprise grants are available for businesses and community projects in rural areas.
Enterprise funds can be used for:
- Training and technical assistance, such as project planning, market research, feasibility studies, and technical reports.
- Buying and developing land, including easements and rights-of-way, commercial construction and renovation, road access, parking, and utilities.
- Pollution control and abatement.
- Working capital for revolving loan funds.
- Job training and advancement for adult students.
- Improving rural transportation.
- Economic development.
- Long-term business strategic planning.
Opportunity funds can be used for:
- Community economic development.
- Feasibility studies, business plans, and long-term strategic planning.
- Leadership and entrepreneur training.
- Rural business incubators.
Rural Business Investment Program (RBIP)
The Rural Business Investment Program (RBIP) offers a Rural Business Investment Company (RBIC) license to development capital organizations for investing in rural communities. Applicants may be for-profit entities or a subsidiary, must have experience in venture capital or community development financing and raise at least $10 million in private equity capital. The requirements for using these funds are:
- At least 75% must be used in rural areas with a population of 50,000 or less.
- A minimum of 50% of funds must be invested in smaller enterprises.
- No more than 10% of RBIC investments may be made in urban areas.
Value Added Producer Grants (VAPG)
Value Added Producer Grants (VAPG) provide funding to agricultural producers for value-added activities that generate new products, create and expand marketing opportunities, and increase producer income. Planning grants of up to $50,000 are available to support activities such as feasibility studies, business and marketing plans. Working capital grants of up to $200,000 are available that can be used for a variety of needs such as processing, packaging, advertising, and salaries. There is a 100% matching funds requirement which may be covered through cash or eligible contributions.
Applicants could receive priority consideration if they’re a farmer or rancher who is just getting started, a veteran, socially disadvantaged, own a small or medium-sized family farm or ranch, or are a farmer or rancher cooperative. Applicants must demonstrate that they own and produce more than 50% of a raw commodity and will retain more revenue from the value-added product than the raw commodity alone.
USDA Energy Programs
USDA Energy Programs can provide funding for energy audits, energy improvements, and the installation of renewable energy systems. Grants and loans are available for agricultural producers and small businesses in rural areas with populations of no more than 50,000 residents. These programs support energy efficiency improvements and renewable energy projects.
Contact a Cogent Bank USDA Lender Today
If you’re interested in a USDA loan in Florida, please contact one of our community bankers to discuss your options and prepare an application for a USDA business loan, a Small Business Administration (SBA) loan or a business term loan. Please call us at 888-577-0404 or visit our locations throughout the state of Florida.
Disclaimer: The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.
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