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| Of particular interest
to some people who are looking for loans in rural areas is
the US Department of Agriculture’s Business & Industry
loan program, which can guarantee up to 80% of a lender’s
loan to our client. This important credit enhancement for the
lender makes a world of difference in certain instances for
those dealing with a bank or lending facility that are looking
for a working line of credit or a construction loan. Blackstone
has a network of lenders and investors that we work with to
help our clients reach or maintain their financial goals. |
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Some of the more common uses of B&I loans
are: |
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• Start up costs and working capital
• Processing and marketing capital
• Development costs
• Construction, conversion and expansion
• Purchase of equipment, machinery and supplies
• Plant repair and modernization
• Business acquisition |
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| The Business & Industry
("B&I") loan guarantee program is designed as
a cooperative effort between the federal government and private
lenders to make loans that might not otherwise be made available
in rural settings. The USDA defines a rural setting as a community
with a population of 50,000 or less. In the B&I loan guarantee
program, the USDA guarantee to the lender against a loss resulting
from borrower default ranges from 60% to a maximum of 80%.
In return both the lender and the USDA look for borrowers who
are credit worthy and who meet certain criteria for these loans.
The list of criteria is not extensive and can in certain instances
be negotiated. Blackstone provides not only the expertise on
providing the application package and project managing with
our clients for a timely turn around, we also in certain instances
can help the lender and USDA adhere to the regulations, which
benefits the borrower. |
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