USDA Commercial Loan Program

Commercial LoansThe USDA Commercial Loan program is designed to help stimulate rural economies by helping rural businesses find the financial backing they need to create jobs and thriving businesses in their area. Because a lot of banks and financial institutions refuse to lend to companies in rural areas of less than 50,000 residents, the USDA commercial loan program steps in to provide the necessary backing that rural businesses need to build and grow in today’s tough economy. USDA Commercial Loans help to create and maintain employment in rural areas, as well as working to improve the overall economic climate of the area. By expanding the lending capability of private lenders in rural areas, the USDA has provided a real avenue to obtain financial capital and provide lasting benefits to your rural community.


To be eligible for a USDA Commercial loan, you must meet the following qualifications. First of all, your upcoming project must be in a rural area, or in a small town or city with less than 50,000 residents. Most types of enterprises qualify including manufacturing, wholesale, retail, and service type businesses. Proprietorships, Corporations, Partnerships, LLC’s, Co-Ops, Trusts, Non-Profits, Public Bodies, and Indian Tribes are also eligible. The majority ownership of these businesses must be held by US citizens or permanent residents, and any ownership by government or military employees must be less than 20%.

Businesses Who Are Ineligible

There are several types of businesses that are ineligible for a USDA Commercial loan. Lending, investment, and insurance companies are all ineligible, as well as golf courses, racetracks and gambling facilities. Owner occupied and rental housing projects are ineligible along with any project involving more than $1 million dollars and the relocation of 50 or more jobs. Any businesses that practice illegal actively are strictly prohibited.

General Requirements

To be eligible for a USDA Commercial loan you must be able to prove adequate cash flow to meet all debt obligations and operating expenses. You must also need to provide adequate collateral, normally at least equal to the loan amount. Lenders might discount collateral consistent with a sound loan to value policy. For more information on your eligibility of a USDA Commercial loan please contact your local USDA field office.