USDA B&I Loans

Programs by the Department of Agriculture’s Rural Development for individuals / companies looking to acquire, refinance or construct new self-storage sites. These self-storage sites must be in a town with less than 50,000 people but preferably less than 25,000. Loans are funded by USDA in each individual State so you will need know if monies are available in the fund in the respective State. B&I loans tend to take longer as monies need to be appropriated as funds run out periodically.

Types Of Financing:

  • Purchases
  • Refinances
  • Construction
  • Expansion
  • Start-Up

Loan Amounts:     $500,000  –  $10,000,000

Terms:                    30 Year Term / 30 Year Amortization

Interest Rate:       Prime + .5% – 2.75% (Varies by credit risk)

Loan To Value:     50 – 90%

Pre-pay Penalties:

Fees:

  • None To Minimal Lender Fees
  • Due Diligence Deposit
  • Customary Closing Costs
  • Construction Fee, if applicable, to offset monitoring costs
  • The USDA Charges A Fee Of Approximately 2.0% (depending on loan amount and percentage of guarantee, usually 80%)

Eligibility:

  • Small Business
  • US Citizen Or Permanent Resident Alien Status
  • Good Credit / Character
  • Verifiable Cash Flow Or Credible Projections
  • Must Be In Eligible Location (Less than 50,000 Population, preference for cities with less than 25,000 people)

To pre-qualify for financing, download the following forms and provide the following information:

  1. Loan Application  (pdf)  (Word) or Apply Online
  2. Personal Financial Statement  (pdf)  (Word)
  3. Resume  (pdf)  (Word)
  4. 2013 Year End Business Financials
  5. 2014 Year-To-Date Business Financials

This is a general guideline for documents normally needed depending on the type of financing being applied for.