The USDA Business & Industry (B&I) loan guarantee program is one of the largest and most flexible government-backed lending programs available to rural Texas businesses. With loan guarantees supporting amounts up to $25 million, the program provides access to capital for business expansion, equipment purchases, working capital, and real estate in communities that conventional lenders may underserve. If your Texas business is located in or benefits a rural area, the B&I program may provide financing terms significantly better than conventional alternatives.
How the B&I Program Works
Loan Guarantee Structure
USDA does not make direct B&I loans. Instead, USDA guarantees a percentage of loans made by conventional lenders, reducing the lender's risk and encouraging lending to rural businesses that might otherwise not receive financing. Guarantee percentages range from 60% to 80% depending on loan size.
Loan Amounts
B&I loans can reach up to $25 million, making the program suitable for major business investments that would exceed SBA lending limits. This capacity makes B&I particularly valuable for manufacturing facilities, agricultural processing plants, and large-scale business expansions.
Eligible Areas in Texas
The B&I program serves rural areas, generally defined as communities with populations of 50,000 or fewer that are not part of a metropolitan statistical area. In Texas, this includes hundreds of communities across the state. USDA maintains an online eligibility map that confirms specific addresses. Many Texas businesses are surprised to discover their location qualifies. USDA rural programs in Texas.
Eligible Uses
- Business expansion: New facilities, equipment, and capacity investments.
- Working capital: Operating expenses and inventory for growing businesses.
- Real estate: Purchase or construction of commercial property.
- Equipment: Purchase or lease of machinery, vehicles, and technology.
- Debt refinancing: Under qualifying conditions, existing business debt may be refinanced.
- Business acquisition: Purchase of existing businesses including goodwill.
Eligibility Requirements
Borrowers must be U.S. citizens or legal entities organized in the U.S. The business must be located in an eligible rural area or provide employment or economic benefit to a rural area. Businesses must demonstrate ability to repay and provide collateral. Public bodies, nonprofits, and cooperatives may also qualify.
Application Process
Applications are submitted through participating commercial lenders. USDA Rural Development offices in Texas can identify participating lenders in your area and provide pre-application guidance. The Texas USDA Rural Development state office coordinates program delivery across the state.
Find Programs That May Fit Your Business
USDA B&I may be combined with other federal, state, and local programs. Our free screening report identifies which USDA and other programs match your rural Texas business. Start your free screening →