Farmers, ranchers, nonprofits, and more: USDA business loans were created to support endeavors in America’s underserved communities. Learn more about these and other business loans available through Greater Nevada Credit Union and Greater Commercial Lending, GNCU’s expert business lending subsidiary.
USDA Business Loans
Support for Nevada’s Rural Businesses
What is a USDA Business Loan?
The U.S. Department of Agriculture created the USDA loan program to support businesses in rural communities–usually farmers and ranchers, but not exclusively. Businesses in many different industries have successfully applied for and used these funding sources. USDA business loans are backed (as well as partially guaranteed) by the USDA and available through banks and credit unions like ours.
USDA Rural Energy for America Program (REAP) Loans
Go green with guaranteed green from this special USDA loan. The REAP program offers loan funds for renewable energy systems and improvements to agricultural and rural small businesses.
Be an agricultural producer engaged in agricultural production earning at least 50% of your gross income in rural or non-rural areas. Be a rural business that is located in an area with 50,000 or fewer residents.
Your loan can finance up to 75% of eligible project costs. The maximum amount you can borrow is $25,000,000. The minimum amount you can borrow is $5,000.
Rates are negotiated between lenders and borrowers. You may not exceed the USDA maximum rate. Rates can be fixed or variable.
The initial guarantee fee is 1% of the guaranteed loan amount. The guarantee retention fee is 0.25% of the outstanding principal balance and will be paid annually. Loan origination fees are negotiated between lenders and borrowers.
Real estate: 30 years. Equipment: 15 years or useful life, whichever is less. Real estate and equipment: 30 years. Working capital: 7 years.
USDA Business & Industry (B&I) Loans
The Business & Industry Guaranteed Loan Program is one of the most flexible lending options available for rural businesses, offering credit for almost any legal business purpose.
Be a rural business-that is, located in an area with 50,000 or fewer residents.
Loan guarantees of up to 80%. $25,000,000 maximum loan limits.
Rates are negotiated between lenders and borrowers. Rates can be fixed or variable. Variable interest rates won’t be adjusted more than once quarterly.
Fees vary, but longer terms can help reduce fees incurred later on with shorter term loans and balloon loans.
Real estate: 30 years. Equipment: 15 years or useful life, whichever is less. Real estate and equipment: 30 years. Working capital: 7 years. Interest-only periods (if warranted).
Benefits of USDA Business Loans
Rural businesses across many industries have found more financial freedom thanks to USDA business loans. And when you apply for one through Greater Nevada Credit Union, you’ll enjoy credit union-exclusive perks you won’t find with traditional banks.
USDA loans generally offer more advantageous terms than conventional business loans.
As a credit union, we’re proud to offer better-than-average rates on many business loans, including USDA loans.
Get personalized financial guidance and access community resources as you apply for your USDA loan.
USDA Credit Union Commercial Lending Partner
Greater Nevada Credit Union is proud to be a USDA commercial lending partner. This means we can pass off all the great benefits of banking with a not-for-profit cooperative, to members with rural businesses–like you. Let us work with you to see options available for USDA loans or other business loans.