USDA B and I Loans—flexible capital for eligible rural businesses
The USDA Business and Industry (B and I) program encourages private lending in rural communities by providing a federal guaranty to participating lenders. For eligible projects, it can support long-term financing of facilities, equipment, and working capital with structures designed around the health and growth of the operating business. Since 2009, Market Direct Capital has helped owners package lender-ready files, document eligibility, and move efficiently from pre-qualification through closing.
Who it’s for and why it exists
B and I focuses on businesses that operate in eligible rural areas (as defined by USDA) and contribute to local jobs and economic stability. The guaranty enables lenders to extend terms and consider structures that might be difficult with conventional credit alone. We confirm location eligibility early, outline a practical structure, and identify lenders with consistent B and I execution.
What B and I can finance
Typical uses include acquiring, constructing, or improving facilities used by the operating business; purchasing major equipment with long useful life; and providing growth working capital. Eligible debt refinance may be possible when it strengthens the business and fits program rules. Projects can range from single-tenant operations to complex, multi-phase expansions; our role is to keep the narrative and numbers clear for underwriting.
Structure and terms—big picture
B and I loans are made by private lenders and guaranteed in part by USDA. Terms and rates are lender-set within program guidelines and commonly align with the economic life of the assets being financed. Equity contribution and collateral expectations vary by risk profile and use of funds; strong cash flow, experienced management, and credible projections help shape the outcome. We set realistic expectations early and assemble a complete, defensible package.
Where B and I shines
Facility acquisition or expansion in a qualifying area. When a company needs a larger footprint to grow, B and I can help align amortization with the life of the asset while keeping payments practical for operations.
Major equipment and modernization. Production lines, specialized machinery, and technology upgrades that anchor long-term competitiveness can be structured with patient terms that match useful life.
Working capital for growth and resiliency. Seasonal ramps, inventory builds, and process improvements may be supported when the case for repayment is clear. We help translate strategy into lender-ready assumptions and projections.
Process with Market Direct Capital
We start with an eligibility screen (location, use of funds, and business profile), then outline a structure and timeline. Our packaging includes a concise narrative, sources and uses, global cash flow and DSCR, and three-statement financial projections with assumptions that underwriting can follow. From term sheet to closing, we coordinate third-party items and keep milestones on track.
If a portion of your project also fits SBA programs (7(a) or CDC/504), we can map a combined approach so each need sits in the lane that fits it best.
Getting started
Share your address, project scope, and timing. We’ll confirm rural eligibility, align the structure, and match with lenders experienced in B and I execution—so you have a clear, credible path to funding.