Rural Lender Advantage

The Small/Rural Lender Advantage (S/RLA) initiative is designed to accommodate the unique loan processing needs of small community/rural-based lenders by simplifying and streamlining loan application process and procedures, particularly for smaller SBA loans. It is part of a broader SBA initiative to promote the economic development of local communities, particularly those facing the challenges of population loss, economic dislocation, and high unemployment.

Key Features of the Initiative:

• A streamlined, simpler, and more user friendly 7(a) process for small loans ($350,000 or less)

• One page application (two sided) for very small loans with key, but limited additional information required for loans above $50,000

• SBA guarantees 85 percent of loans of $150,000 or less and 75 percent of loans greater than $150,000

• Loans centrally processed through SBA’s Standard 7(a) Loan Processing Center

• Expedited SBA processing with routine loans processed within 3-5 days

• Lenders can transmit applications via fax and eventually online

• Simplified SBA loan eligibility questionnaire to help small or occasional lenders meet SBA’s eligibility requirements

• Training on SBA program requirements from local SBA offices

B&I Guaranteed Loan Program

If your business is located in a rural community, you may qualify for special financing. The U.S. Department of Agriculture (USDA) currently maintains a Business and Industry (B&I) Guaranteed Loan Program.  The USDA provides guarantees of up to 80 percent of a loan made by a commercial lender.

Uses for a B&I Loan

Proceeds from such a loan may be used for:

• Working capital

• Machinery and equipment

• Buildings and real estate

• Certain types of debt refinancing.

The B&I Loan Guarantee Program Fact Sheet provides all you need to know about obtaining one of these loans, including eligibility, loan terms and conditions, equity requirements, and interest rates. Like SBA loans, you need to go through your local bank or financial institution to apply for a B&I loan. If you have any questions about the B&I Loan Guarantee Program or other financial options, contact your state's Rural Development Field Office.