--- title: Commercial Loans and Fun Blog | rural commercial loan description: rural commercial loan | George Blackburne, owner, offers insight into the commercial loans and mortgage industry in this Commercial Real Estate Loan Tips blog. --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [Business and Industries Loans (B&I Loans) from the USDA](https://info.c-loans.com/bid/53468/Business-and-Industries-Loans-B-I-Loans-from-the-USDA) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Wed, May 26, 2010 - [Tweet](https://twitter.com/share) *It's a Terrific Commercial Loan Program if Your Property is Located in a Small Town* The USDA Business and Industries Loan (B & I Loan) Program is a Federal loan guarantee program that is designed to encourage the commercial financing of rural businesses. The reason why the Federal government is involved is because it wants to create and save rural jobs and improve the economic and environmental climate of rural communities. --- **Are you ready to apply for a USDA B&I loan? Please call Tom Blackburne at 574-210-6686 or email him at [tommy@blackburne.com](mailto:tommy@blackburne.com).** --- Here's what makes a B&I loan different: The Business & Industry Loan program is lender-driven. The USDA guarantees the loan rather than lending directly. A commercial lender requests the B & I guarantee, and, if it is approved, the commercial lender makes and services the loan. The benefits of the B & I Guaranteed Loans Program for businesses is that the borrower gets a higher loan amount. The reason why is because the guarantee strengthens the loan application, allowing the bank to feel comfortable with a smaller equity injection. B&I loans also offer lower interest rates and longer repayment terms. This greatly assists businesses that may not qualify for conventional commercial real estate financing, which provides the rural business greater stability and leads to greater growth, expansion and rural employment. Below is a list of the authorized uses of the loan funds. A borrower must be engaged in, or proposing to engage in, a business that will (1) Provide employment; (2) Improve the economic or environmental climate; (3) Promote the conservation, development, and use of water for aquaculture; or (4) Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems, and other renewable energy resources. Authorized Loan Purposes: (1) Business and industrial acquisitions, construction, conversion, expansion, repair, modernization or development costs. (2) Purchase of equipment, machinery or supplies. (3) Start-up costs and working capital. (4) Processing and marketing facilities. (5) Pollution control and abatement. (6) Refinancing for viable projects, under certain conditions. (7) Purchase of start-up cooperative stock for family sized farms where commodities are produced to be processed by the cooperative. Bottom line, the USDA Building and Industry Loan (B&I Loan) program is a terrific program if the commercial property is located in a town of less than 50,000 residents. A great many small motels are financed using the B&I loan program. --- **Are you ready to apply for a USDA B&I loan? Please call Tom Blackburne at 574-210-6686 or email him at [tommy@blackburne.com](mailto:tommy@blackburne.com).** 2 Comments [Click here to read/write comments](https://info.c-loans.com/bid/53468/Business-and-Industries-Loans-B-I-Loans-from-the-USDA#comments-listing) Topics: [business and industries loan](https://info.c-loans.com/topic/business-and-industries-loan), [rural commercial loan](https://info.c-loans.com/topic/rural-commercial-loan), [USDA B&I Loan](https://info.c-loans.com/topic/usda-bi-loan), [USDA Business and Industries loan](https://info.c-loans.com/topic/usda-business-and-industries-loan), [USDA commercial loan](https://info.c-loans.com/topic/usda-commercial-loan), [USDA lender](https://info.c-loans.com/topic/usda-lender), [USDA loan](https://info.c-loans.com/topic/usda-loan), [B&I commercial loan](https://info.c-loans.com/topic/bi-commercial-loan), [B&I lender](https://info.c-loans.com/topic/bi-lender), [B&I loan](https://info.c-loans.com/topic/bi-loan) [All posts](https://info.c-loans.com/all) ### George Blackburne III Owner of C-Loans, Inc. ![George Blackburne III C-Loans Owner](https://info.c-loans.com/hs-fs/hubfs/George%20Head%20Shot%20Small%205%20by%207%20copy.jpg?width=158&name=George%20Head%20Shot%20Small%205%20by%207%20copy.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. 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