Loan Programs

Product overview

Commercial financing for rural business; creating and saving rural jobs, improving economic climate of rural communities

Maximum loan limit

$25 Million

Minimum loan amount

$1 Million

Loan type

Real estate buildings

Eligibility

Business purpose in rural areas. Manufacturing, wholesale, retail, service, new or existing. Must be in a rural area, beyond any 50,000+ population city and its urbanized periphery (there are a number of exceptions for which eligibility determination can be verified with a complete address of the subject business of the property).
Majority ownership must be held by US citizens or permanent residents.
Any ownership of government or military employees must be less than 20%

Loan term & amortization

30 years maximum (not to exceed useful life of collateral)
Ballons are not permitted. Reduced payments may be scheduled in the first 3 years

Rates

Lender's customary commercial interest rate — fixed or variable (rate may not vary more than quarterly). Rates are tied to prime and ajusted quarterly or can be fixed for 3, 5 or 10 years.
Starting in the high 6%

Fees

Lenders customary fees
USDA charges a one time guarantee fee of 2% of the guarantee amount. The loan guarantee is subject to annual renewal fee of 0.25% on the guaraneed protion of outstanding principal

Prepayment policy

Lenders customary pre-payment penalty

Product overview

Must be owner occupied 51%+ to qualify under this program

Loan amount

from $100K to $2 Million

Minimum Fico

650

Minimum DSCR

1.25/1.00

Loan purpose

Purchase, refi & cash out. Cash out is only accepted under this program if proceeds are for property improvement, payment of business debt and inventory

Loan amortization

25 years

Property types

Car washes, auto repair/transmission/body shop, bowling alleys, medical/dental & veterinarian offices, liquor stores, convenience stores, supermarkets, child daycares, adult daycares, assisted living facilities, restaurants, retail/office condo/mixed use/industrial, self-storage facilities

Max LTV

90%

Interest rate

Starts at prime + 2.75%

Prepayment penalty

5% in year 1; 3% in year 2; 1% in year 3

Underwriting philosophy

Global cash flow underwriting