PHOENIX LENDER SERVICES
USDA Business Loans
Whether you’re a business owner, nonprofit leader, or farm/ranch operator, there’s a USDA loan program designed to support your unique needs.
Types of USDA Business Loans
At Phoenix Lender Services, we empower businesses in rural communities across America with the capital they need to thrive and expand. Through United States Department of Agriculture (USDA) programs, we serve a wide range of entities, including for-profit businesses, nonprofits, business cooperatives, public bodies, and Federally recognized Tribes. Our team of commercial lending specialists is dedicated to USDA commercial loans, guiding you through short-term and long-term financing options tailored to your unique needs.
With several USDA loan types available, we’ll help you select the right one to support your business goals.
USDA OneRD Guarantee Loan Initiative
This USDA Rural Development loan program offers four main business loan types, each with a standardized set of requirements, processes, and forms to help streamline your application.
USDA Business & Industry (B&I) Loans
Purchase or expand a business, fund improvements, equipment, real estate, boost working capital, or refinance debt with a USDA loan.
USDA Rural Energy for America Program (REAP) Loans
Install renewable energy systems, enhance energy efficiency, or upgrade to energy-efficient equipment with a USDA loan.
USDA Community Facilities (CF) Loans
Loans available for public bodies, federally-recognized tribes, and nonprofits to develop critical infrastructure and services that support individuals and businesses in rural areas.
USDA Water & Waste Disposal (WWD) Loans
Enhance access to clean, reliable water and waste disposal systems for households and businesses in rural communities.
USDA Farm Service Agency (FSA) Guaranteed Loans
USDA farm loans are designed to support America’s family farms, helping provide the livestock and crops that fuel our nation.
USDA C-Pace Loans
Property owners may finance energy-efficient upgrades, renewable energy installations, or water conservation improvements.
How Can You Use a USDA Business Loan?
Whether you’re starting your journey or preparing for another expansion, we provide businesses in eligible rural areas with access to USDA loans that offer flexible payment terms and competitive interest rates. Choose the USDA loan program that best meets your immediate business needs, supports your short-term goals, or helps you achieve long-term success.
Real Estate Financing
Acquire an existing business, expand your space, build a new owner-occupied facility, or purchase real estate for your operations.
Energy Efficiency Projects
Implement renewable energy systems, upgrade to energy-efficient technologies, or install new equipment to boost energy efficiency.
Equipment Financing
Get the equipment you need to replace outdated assets or expand your operations with financing at affordable rates.
Inventory Purchasing
Secure funding to stock up on inventory and meet both immediate and future demand.
Working Capital
Obtain a term loan to inject permanent working capital into your business, improving your cash flow and overall financial stability.
Is a USDA Business Loan Right for My Company?
USDA loans aren’t just for agriculture. As one of the nation’s leading USDA lenders, we assist rural businesses and nonprofit organizations across America in reaching their potential and serving their communities with pride.
Small Businesses in Rural Areas
The USDA can help you operate, expand, and grow your business. USDA business loans are available for a wide range of needs, from working capital to purchasing existing businesses, commercial real estate, equipment, inventory, renewable energy projects, and energy efficiency upgrades to infrastructure and equipment. Loans are also available for debt refinancing to improve cash flow and create or preserve jobs. With competitive terms and interest rates, there’s a USDA loan for your small business at every stage of growth.
Owner-Operated Farms and Ranches
USDA loans provide farmers and ranchers in rural areas with the means to finance and expand their operations. Loans are available for machinery, equipment, supplies, agricultural production and processing facilities, as well as commercial real estate purchases and improvements. Working capital loans and debt refinancing are also available to support continued growth.
Food Supply Chain
USDA loans offer favorable financing to key players in the food supply chain, from new business start-ups to established companies looking to expand. These loans support food systems projects that contribute to feeding America.
Nonprofit Organization
The USDA offers nonprofit organizations a variety of loan options, similar to those available to for-profit businesses. USDA loans can help nonprofits with working capital, purchasing or improving buildings, acquiring equipment and supplies, and accessing capital with reasonable fees.
Frequently Asked Questions
About USDA business loans
What is a USDA business loan?
USDA commercial loans are business loans backed by the U.S. Department of Agriculture (USDA). These loans are provided by lenders like banks or credit unions to eligible businesses in rural areas. The USDA guarantees a portion of the loan, helping businesses access financing. At PHX Finance, we partner with banks and credit unions to offer access to USDA loan programs.
What businesses qualify for a USDA business loan?
USDA loans are available for small businesses, farms, ranches, and nonprofits, each with specific requirements and repayment terms. Generally, the business or project must be located in a rural area, have a strong credit history, and show enough cash flow to support repayment. Our USDA loan experts will guide you through the process, from eligibility and loan options to application and decision-making.
What is considered an eligible rural area for a USDA business loan?
The USDA defines rural areas as those with a population of 50,000 or fewer residents. Alternatively, a business can qualify if it operates in a city or town with a larger population but is seeking financing for a project in an eligible rural area.
How much can I borrow with a USDA business loan?
Loan amounts vary depending on the business and loan product, but USDA loans typically range from $200,000 to $5 million, with some loans reaching up to $25 million.
What are the interest rates for a USDA business loan?
Interest rates for USDA loans vary by product and are influenced by your business’s specific financing needs. A PHX Finance USDA loan expert can help you understand the rates and guide you toward the best option for your business.
Can I get a USDA business loan for an LLC?
Yes. We help businesses across rural America, including LLCs, access affordable capital, no matter the ownership structure.
Can I use a USDA business loan to buy commercial property?
Yes. USDA loans can be used to purchase, develop, or improve commercial real estate. They can also fund conversions, expansions, modernization, or repairs for businesses, including agricultural processing facilities.
What is the difference between a USDA guaranteed business loan and a USDA direct business loan?
The key difference is who funds the loan. In a USDA direct loan, the USDA acts as the lender. In a USDA guaranteed loan, private lenders like credit unions and banks provide the funding, while the USDA guarantees the loan against default.
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