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Published May 25 2020 updated May 25 2020 3 minutes 30 seconds reading time.
Summary at a Glance
The BI Guaranteed Loan program, as funded by the CARES ACT. The BI CARES Act Program will focus assistance to rural businesses, including agribusinesses and agricultural producers, with financial needs unmet by other Federal Government programs.

The New Business and Industry (B&I) CARES Act Guaranteed Loan Program.

Effective Date: May 22, 2020.

Docket No. RBS-20-BUSINESS- 0016

"The B&I Guaranteed Loan program, as funded by the CARES ACT, is similar, yet different from other Federal Government programs. The B&I CARES Act Program will focus assistance to rural businesses, including agribusinesses and agricultural producers, with financial needs unmet by other Federal Government programs to prevent, prepare for, and respond to the coronavirus pandemic."

"Although loan purposes under the B&I CARES Act Program may overlap with loan purposes of EIDL, the B&I CARES Act Program will focus assistance to rural businesses that are ineligible to submit new EIDL applications or that are too large or otherwise not eligible for EIDL or have financial needs due to the coronavirus pandemic greater than EIDL assistance."

"The guaranteed loans funded by the B&I CARES Act Program will be for working capital loan purposes to support business operations and facilities in rural areas. While loan purposes under the B&I CARES Act Program may overlap with some of the purposes of the SBA PPP, the B&I CARES Act Program guaranteed loans will cover a broader range of typical business operating expenses and will not be focused on payroll costs. The B&I CARES Act Program will include funding for inventory, raw materials, supplies, and critical operating expenses for rural manufacturing businesses, including purposes that were not included in the allowable uses of PPP funds."

Resource: Business and Industry (B&I) CARES Act 

"Loans can be made for a variety of purposes, including business acquisition, expansion or improvement; purchase of real estate, machinery and equipment, or supplies; limited debt refinancing; and working capital."

Resource: Business and Industry (B&I) CARES Act 

"The B&I CARES Act Program guaranteed loan will be a 90% guarantee and require the lender to retain a percentage of the loan and thus hold some of the risk. The loans do not include terms for loan forgiveness and require 100% repayment by the borrower. The loans must be secured with business collateral and may require personal guarantees.

A bank or lender that is not already a participating lender in SBA's guaranteed business loan program (7(a) loan program) must be approved or authorized by the SBA. All lenders that are subject to supervision and credit exam by a Federal or State agency are automatically eligible to participate in the B&I program. Non-supervised lenders may apply to the Agency for approval as an eligible lender."

Resource: Business and Industry (B&I) CARES Act 

Apply at any 7(a) SBA approved lender.
This is a 7(a) loan funded by the CARES Act and secured by federal tax dollars to lenders at up to 90% of the loan. Lenders are allowed to hold back the 10% unsecured according to the act.

Resource Focus: Rural Business-Cooperative Service

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