USDA Increases Guaranty for Business & Industry Loans to 85%

March 31, 2026

Bob Coleman
Founder & Publisher

Hot Topic Tuesday: USDA Increases Guaranty for Business & Industry Loans to 85%

This percentage increase will apply to all guaranteed loans approved in fiscal year  2026.

Businesses must be located in rural areas with populations of less than 50,000; however, the business’s headquarters may be based in a larger city, as long as the project itself is in an eligible rural area.  

Eligible entities for B&I loans include for-profit or non-profit businesses, cooperatives, federally recognized Tribes, public bodies, and individuals engaged or proposing to engage in a business. 

Eligible uses include; 

• The purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties.
• The purchase and installation of machinery and equipment, supplies, or inventory.
• Debt refinancing when such refinancing improves cash flow and creates jobs
• Business and industrial acquisition, where the loan will maintain business operations and create or save jobs.
• Business conversion, enlargement, repair, modernization, or development

Applications are being accepted now and throughout the year on a rolling basis.