May 21, 2020Ag producers part of $1B in loan guarantees for rural businesses
U.S. Secretary of Agriculture Sonny Perdue announced May 21 that the Department is making available up to $1 billion in loan guarantees to help rural businesses during the coronavirus pandemic.
Additionally, agricultural producers that are not eligible for USDA Farm Service Agency loans may receive funding under USDA Business & Industry (B&I) CARES Act Program provisions included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
- Provide 90% guarantees on B&I CARES Act Program loans;
- Set the application and guarantee fee at 2% 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.