USDA B&I Loans for Rural Manufacturing and Raw Materials Processing
The manufacturing sector is a cornerstone of the economy in the United States. As demands change, manufacturing and raw materials processing businesses adapt, but there are increasing challenges. Traditional lending channels have been steadily increasing their requirements since the Great Recession, making it more difficult for smaller manufacturers to get the financing they need. At Rushview Commercial Funding, we work with small manufacturers and raw materials processors to provide the financing they need to preserve and create jobs.
The United States is home to over 250,000 manufacturers that keep our economy moving. However, 75% of those manufacturing businesses have under 20 employees each, and need a secure and reliable source of capital to maintain operations, purchase materials, cover payroll, and hire additional workers. The manufacturing sector is in a tenuous position and open to outside forces, including:
- Increased debt due to economic downturns
- Hiring cutbacks/turnover rates
- Delayed payments from clients
- Supply chain disruptions
Having access to the right funding can help manufacturers and raw materials processors stay on track so they can thrive and grow. For these reasons, Rushview Commercial Funding provides USDA Business and Industry (B&I) loans to small manufacturers nationwide. Our USDA B&I loans for manufacturing and raw materials processing businesses can be used for a variety of purposes, including:
- Working capital
- Purchasing inventory, materials, and supplies
- Hiring employees
- Equipment, machinery, and vehicles
- Cash flow
- Overhead
USDA B&I loans from Rushview Commercial Funding feature:
- Loan amounts up to $25 million
- LTV up to 80% on loans less than $5 million
- LTV up to 70% on loans from $5 million up to $10 million
- LTV up to 60% on loans greater than $10 million
- Up to 80% FMV for real estate
- Up to 70% FMV for equipment and machinery
- Up to 60% of book value for raw inventory and finished goods
- Up to 60% of book value for receivables
Terms:
- Up to 30 years for real estate
- Up to 15 years or the full life-cycle of the equipment, whichever is less
- Up to 7 years for working capital
- Full amortizations
- No balloon payments
- Interest-only payments for the first 3 years
Requirements:
- The ability to repay the loan
- Principals must demonstrate good credit history
- New businesses will be required to provide a feasibility study from a recognized independent source
- New businesses must hold a balance sheet equity position of at least 20% at the time of closing
- Existing businesses must hold a balance sheet equity position of at least 10% at the time of closing
- Corporate and personal guarantees are required from all principals with interest of 20% or greater, with the exception of limited partners
Contact Us
If you own a small manufacturing or raw materials processing business, contact Rushview Commercial Funding today, and get the financing your need with our USDA B&I loans.