USDA Business & Industry Loans

One of the hottest products in commercial real estate finance today is the USDA Business and Industries (B&I) loan program.  You can think of it as sort of an SBA loan program for commercial properties in the Boonies.  Before the Great Recession, this was a sleepy program that was only offered by a tiny handful of nationwide lenders familiar with the program.

Since the advent of the Great Recession, however, many commercial lenders will not originate commercial loans unless they are somehow guaranteed by the Federal government.  Most commercial loans that are guaranteed by the Federal government are SBA loans; but what about those commercial properties that are not eligible for an SBA loan, like commercial properties that are not owner-used or commercial properties that have fallen out of favor with the SBA, like motels and gas stations?

If the commercial property is located in a rural area, the USDA Business and Industries loan program is a very attractive alternative.  This section of our commercial mortgage portal is dedicated to an explanation of USDA B&I loans.