USDA Loan Guarantee Program
MassDevelopment is an approved lender for the USDA Rural Development Business & Industry Loan Guarantee Program. The program allows us to support job creation and economic development initiatives in the rural areas of the state – communities with fewer than 50,000 in population and not adjacent to communities with over 50,000 in population.
Eligible Borrowers:
- Any legal entity, including individuals (U.S. citizens or legal residents), businesses, nonprofits, and public entities
Eligible Loan Purposes:
- Real estate – acquisition, construction and leasehold improvements for tenant and owner occupied buildings
- Equipment
- Value-added agricultural projects
- Term working capital
- Debt refinancing – existing debt must be less than 50% of total loan
Loan Guarantee Limit:
- 80% on $5,000,000 or less
- 70% on $5,000,000 to $10,000,000*
- 60% on $10,000,000 to $25,000,000*
* For loans over $5,000,000, MassDevelopment requires participant lenders.
Other Requirements:
- Business must have a tangible balance sheet net worth (GAAP basis) of at least 10% for existing business and 20% for new businesses
- Adequate collateral and supported by an appraisal
- Personal or corporate guarantee generally required for all owners having at least a 20% interest in borrower
