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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

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