Applicant may be an individual, partnership, LLC, for-profit or non-profit corporation, cooperative, or Alaska Native entity. The project must be in a rural area or city of less than 50,000 population.
Loan guarantees of up to 90% of the loan amount. Loans may be up to $25,000,000. Loans can be used for financing business construction, conversion, and modernization as well as for equipment, facilities, machinery, supplies, debt restructure, transfer of ownership, and working capital. Projects which create or save jobs have the highest priority. The borrower works with a lender, then the borrower and lender jointly apply for a loan guarantee. There is a one-time loan guarantee fee of 1% or 2% and an annual servicing fee (currently 0.25%).
Contact Information
Rural Development
U.S. Department of Agriculture
800 W. Evergreen, Suite 201
Palmer, AK 99645
Phone: (907) 761-7722
Fax: (907) 761-7793
Web site: http://www.rurdev.usda.gov
Banks and credit unions have partnered with USDA to offer loans for businesses located in communities outside the Municipality of Anchorage. The loans are guaranteed by the USDA and can be secured with accounts receivable, inventory, equipment, furniture and fixtures, or real estate. The purpose of USDA loans is to create and maintain employment and improve the economic climate in rural communities.
