U.S. Department of Agriculture: Business and Industry CARES Act Program
The Business and Industry CARES Act Program offers loan guarantees to lenders for their loans to rural businesses and agricultural producers to supplement their working capital to prevent, prepare for, and respond to the economic impacts of the coronavirus. Lenders need the legal authority, financial strength, and sufficient experience to operate a successful lending program. Loans must be used as working capital to prevent, prepare for, or respond to the effects of the coronavirus pandemic.
The following entities qualify for the guaranteed loans: for-profit businesses, nonprofits, cooperatives, federally-recognized tribes, and public bodies.
Borrowing restrictions are:
* Loans may be used only to support rural businesses, including agricultural producers, that were in operation on Feb. 15, 2020.
* Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence.
*Private-entity borrowers must demonstrate that loan funds will remain in the U.S.
Amount: The percentage of the loan guarantee is 90% for all loans. The maximum loan term is 10 years.
Eligibility: Federal or state-chartered banks; savings and loans; farm credit banks; credit unions.
Eligible areas are:
* Rural areas outside of a city or town with a population of fewer than 50,000 people.
* The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area.
* The lender may be located anywhere in the United States.
* Projects may be funded in rural and urban areas under the Local and Regional Food System Initiative (https://www.rd.usda.gov/files/Local_Food_Fact_Sheet). Check eligible addresses for Business Programs (https://eligibility.sc.egov.usda.gov/eligibility/).
Deadline: September 15, 2021, or until funds made available for this purpose are expended.
|Funder||U.S. Department of Agriculture|
|Eligibility||Credit Union, For Profit Organization, Nonprofit Organization|
|Sector||COVID-19 Emergency Response, Economic Development/Job Training|
|Grant Amount||Not Provided|
|Deadline||September 15, 2021|