Business and Industry Guaranteed Loan in Michigan

Goal/purpose: This program improves the economic health of rural communities by increasing access to business capital through loan guarantees. This enables commercial lenders to provide affordable financing for rural businesses.

Additional applicant eligibility criteria: 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., and the facility being financed will primarily create new or save existing jobs for rural U.S. residents.

Project eligibility: Projects must be located in eligible rural areas not in a city or town with a population of more than 50,000 inhabitants. The borrower's headquarters may be based within a larger city, as long as the project is located in an eligible rural area. Eligible uses include business conversion, enlargement, repair, modernization, or development; purchase and development of land, buildings, and associated infrastructure; purchase and installation of machinery, equipment, supplies or inventory; debt refinancing; and business acquisitions. Ineligible uses include lines of credit, owner-occupied and rental housing, golf courses, racetracks, churches, and agricultural production (with certain exceptions).

Application process: Applications are accepted for processing from Lenders on an ongoing basis from October 1 - September 30. Interested borrowers should inquire about the program with their lender. Lenders interested in participating in this program should contact the USDA Rural Development Business Programs Director in the state where the project is located.