Rural businesses in many industries — not just agriculture — can apply for a USDA loan.
USDA loans for businesses are designed to create jobs in rural communities and promote small businesses in agriculture as well as other industries.
In addition to being guaranteed by the U.S. Department of Agriculture (USDA), USDA loans offer:
USDA loans can be used for:
Your business must be located in a rural area and meet a number of other eligibility requirements. USDA loans are available to businesses for not only agricultural purposes, but other industries as well. Your Commercial Loan Officer can go over your business details to help you determine whether you might qualify.
In addition, the business and the owners must have a good credit history and sufficient cash flow to repay the loan. Collateral is required to secure a USDA loan, as well as both personal and corporate guarantees.
In most cases, the following types of documents are required for a USDA loan:
Depending on how you plan to use your loan, there may be additional documentation requirements. Your Commercial Loan Officer can give you a checklist of everything you need to provide.
The USDA requires that financial institutions use the same collateral requirements on a USDA loan as they would for a conventional business loan that is not backed by the USDA.
USDA backing provides financial institutions with extra security, but it cannot be used as collateral.
No, you don’t have to be a member to apply, but you do need to apply and qualify to become a member to accept the loan. But don’t worry—it’s quick and easy to join Alaska USA.
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NOTICE: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract), because all or part of the applicant’s income derives from any public assistance program, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers this credit union’s compliance with the law is: National Credit Union Association, Office of Consumer Protection, 1775 Duke St., Alexandria, VA 22314.
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