U.S. Secretary of Agriculture Sonny Perdue announced on May 21 that the department is making $1 billion available in loan guarantees to help rural businesses. Perdue stated the aim is to help such businesses meet their working capital needs during the coronavirus pandemic.

According to the press release, agricultural producers that are not eligible for U.S. Department of Agriculture (USDA) Farm Service Agency loans may be able to get funding under the Business and Industry Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Program provisions.

USDA will provide 90 percent guarantees on the loans; set the application and guarantee fee at 2 percent of the loan; accept appraisals completed within two years of the loan application date; not require discounting of collateral for working capital loans; and extend the maximum term for working capital loans to 10 years.

Applicants may contact their local USDA Rural Development State Office in the state where the project is located for more information.

For more information, visit the USDA Rural Development website at: https://www.rd.usda.gov/programs-services/business-and-industry-cares-act-program

Read the press release here: https://www.usda.gov/media/press-releases/2020/05/22/usda-provide-1-billion-loan-guarantees-rural-businesses-and-ag