United States Department of Agriculture

Financing Agricultural Businesses

Maximum
Type of Rates and
Purpose Loan Agency
Loan Terms
Amount

Basic 7(a) Starting, acquiring, $5 million Interest Rates: SBA

Loan and expanding a Negotiated
Program small business. This between the
type of loan is the applicant and
Go  most basic and the lender, subject
most used among to the SBA
Small Business maximums
Administration
(SBA) business
loan programs.

Certified The purchase of $5.5 million Interest rates SBA

Development land, including on 504 loans
Company/ existing buildings; are pegged to
504 Loan purchase of an increment
improvements, above the
Go  including grading, current
street improvements, market rate
utilities, parking lots, for 5-year
and landscaping; and 10-year
construction of U.S. Treasury
new facilities or issues.
modernizing,
renovating, or
converting existing
facilities; and/or
purchase of long-
term machinery
and equipment.

November 2015 USDA is an equal opportunity provider, employer, and lender. 1

 SBA Working capital; $50,000 Term: 6 years SBA
Microloans Inventory or
Interest rate
supplies; Furniture or
generally
Go  fixtures; Machinery
between 8 and
or equipment
13 percent.

SBA Disaster Provide financial SBA

Assistance assistance to
victims of disasters
Go  or to individuals
in a declared
disaster area.

SBA Assist small SBA

Economic businesses, small
Injury Loans agricultural
cooperatives,
Go  and nonprofit
organizations as
they recover from
economic losses
resulting from
physical disaster
or an agricultural
production disaster.

November 2015 USDA is an equal opportunity provider, employer, and lender. 2

 USDA • Business • 80 percent • Maximum USDA Rural
Business conversion, for loans of term on Development
and Industry enlargement, $5 million real estate
Loan repair, or less is 30 years
Program modernization,
• 70 percent • Maximum
or development
for loans term on
Go 
• Purchase and between machinery
development of $5 and $10 and
land, easements, million equipment
rights-of-way, is useful life
• 60 percent
buildings, or or 15 years,
for loans
facilities whichever
exceeding
is less
• Purchase of $10
equipment, million, • Maximum
leasehold up to $25 term on
improvements, million working
machinery, maximum capital not
supplies, or to exceed
inventory 7 years
• Debt refinancing • Interest
when new jobs rates are
will be created and negotiated
other conditions between the
are met lender and
borrower,
• Business and
subject
industrial
to Agency
acquisitions when
review
the loan will keep
the business from
closing and/or save
or create jobs

Value-Added Helps agricultural $75,000 for *Matching USDA Rural

Producer producers enter planning funds Development
Grants into value-added grants; requirement
activities related $250,000
Go  to the processing for working
and/or marketing capital
of bio-based, value- grants
added products.

*SBA is not an agency within USDA

November 2015 USDA is an equal opportunity provider, employer, and lender. 3