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USDA Rural Development Loan Requirements

USDA Rural Development Loans can help businesses, nonprofits, or agricultural organizations in rural areas.

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USDA farmer and his loan officer discussing USDA loan options on site at farmer's ranch.

What Is a Rural Development Loan?

The Rural Development Program of the United States Department of Agriculture (USDA) is designed to improve the economies—and lives—of rural America.

USDA Rural Development Loans help business owners, nonprofit leaders, and farm/ranch owners expand, build new facilities, buy equipment, and more. It offers financing for telecommunications, environmental, housing, community programs, and more.

If you are interested in a USDA Rural Development Loan, GCL will help you determine if a USDA Rural Development Loan is right for your business.

How To Qualify for a Rural Development Loan

There are a variety of USDA Rural Development Loans, and each comes with its own requirements and repayment terms.

Generally, the program funds organizations that:

  • Are located in a city or a town with a population of less than 50,000
  • Have a good credit history
  • Exhibit sufficient cash flow to support loan repayment

The USDA also looks for applicants to satisfy other criteria before awarding a loan.

USDA Rural Business Loan Requirements

In order to be eligible for a USDA Rural Development loan, an organization must:

  • Have employees
  • Have a positive economic impact on your community
  • Use renewable energy resources

Our USDA lending specialists can help you understand the full list of requirements to meet the Rural Development program’s criteria.

How Can Your Business Use Rural Development Financing?

USDA Rural Development financing can be used in various ways that improve the lives and economies within rural America. These programs can help an organization:

  • Expand, modernize or purchase equipment
  • Buy, improve or develop commercial real estate or land
  • Purchase or install machinery, equipment, supplies, or inventory
  • Integrate agricultural production or processing facilities

There are also other ways these loans can promote and support small businesses and create jobs in rural communities.

Underwriting Requirements for USDA Rural Development Loans

Let us walk you through the process of finding and applying for a USDA Rural Development loan. We’ll help you gather, organize and submit all the necessary paperwork, and make sure your business is right for this type of financing. Get in touch and our team will get you started.

Frequently Asked Questions

About Rural Development Loans

What are the benefits of USDA Rural Development Loans?

USDA Rural Development Loans offer a competitive interest rate, low monthly payments, and extended repayment terms. This type of financing is an excellent option for businesses that are just getting started, have insufficient cash flows, or need more time to repay traditional funding.

What are the geographic requirements for a rural development loan?

To qualify for a USDA Rural Development Loan, the property must be in an eligible rural area. To see if your property is in a designated area, get in touch with our team, and we’ll walk you through the process.

What is the USDA Rural Development Loan Process?

The USDA Rural Development Loan process varies based on location and the size of your business. Remember that our team will be with you every step of the way, guiding you through the application process and helping collect all necessary documents.

How do I apply for a USDA Rural Development Loan?

You can find our loan application and other resources on our website, but to make sure we find the best fit for your business and location, get in touch with us at your earliest convenience.