USDA Business and Industry Loans in Texas
The USDA Business and Industry (B&I) Guaranteed Loan Program provides long-term commercial financing for businesses and commercial real estate in eligible rural Texas communities. USDA B&I loans offer some of the most favorable terms available — low fixed rates, long amortization periods up to 30 years, and high loan-to-value allowances — for qualifying rural businesses and commercial properties. As a Texas direct lender since 1998, we originate, underwrite, and close USDA B&I loans for commercial real estate investors and business owners throughout rural Texas.
What Is a USDA B&I Loan?
The USDA Business and Industry Guaranteed Loan Program is a federal loan guarantee program administered by the USDA Rural Development agency. Unlike SBA loans, USDA B&I loans are specifically designed for rural communities — towns and cities with populations generally under 50,000 that are not part of an urbanized commuting area. The federal government guarantees up to 80% of the loan amount, enabling lenders to offer more favorable terms than conventional commercial loans.
USDA B&I loans can be used for commercial real estate purchase, construction, expansion, or refinancing. They can also fund equipment, working capital, and business acquisition — making them one of the most versatile commercial financing tools available to rural Texas businesses and investors.
USDA B&I Loan Terms and Features
- Loan amounts: $200,000 to $25,000,000 and above
- Federal guarantee: Up to 80% of the loan amount
- LTV: Up to 80% for commercial real estate
- Real estate terms: Up to 30 years fully amortized
- Equipment terms: Up to 15 years
- Working capital: Up to 7 years
- Interest rates: Fixed or variable; typically 6 to 9% depending on market conditions
- Down payment: As low as 10 to 20% depending on project type
- Owner-occupancy: Not required for investment properties
Who Qualifies for USDA B&I Loans in Texas?
To qualify for a USDA B&I loan in Texas, the business or commercial property must be located in an eligible rural area — generally a community with a population under 50,000 that is not part of a major metropolitan statistical area’s urbanized commuting zone. USDA maintains an eligibility map that borrowers can use to check specific addresses.
Eligible borrowers include for-profit businesses, nonprofits, federally recognized tribes, individuals, and public bodies. The business must be located in an eligible rural area, but the owner does not need to live in a rural area. Texas investors and business owners from Houston, Dallas, San Antonio, or any Texas city can use USDA B&I financing to purchase or develop commercial property in qualifying rural Texas communities.
Business types that commonly use USDA B&I financing in Texas include agriculture and agribusiness, retail businesses in rural town centers, healthcare facilities serving rural communities, hotels and hospitality in rural tourist destinations, manufacturing and light industrial operations, professional offices such as medical and dental, gas stations and truck stops on rural highways, and self-storage facilities in rural markets.
USDA B&I vs SBA Loans
Both USDA B&I and SBA loans are government-guaranteed commercial loan programs, but they serve different markets. The key difference is location: USDA B&I is restricted to eligible rural areas, while SBA has no location requirement. USDA B&I advantages for eligible rural properties include higher loan amounts with no formal cap, longer real estate terms up to 30 years, no owner-occupancy requirement (investment properties qualify), and an 80% federal guarantee that enables better pricing than SBA in many cases. For urban and suburban properties, SBA is the right choice. For rural Texas properties, USDA B&I is often the best financing available anywhere in the market.
Eligible Rural Texas Communities
Texas has hundreds of USDA-eligible rural communities where B&I loans can be used for commercial real estate financing. Communities where we regularly originate USDA B&I loans include Brenham, Bastrop, Marble Falls, Burnet, Kerrville, Fredericksburg, and Gonzales in Central Texas; Nacogdoches, Lufkin, Huntsville, Palestine, and Jacksonville in East Texas; Alpine, Marfa, Fort Stockton, Pecos, Big Spring, Snyder, and Sweetwater in West Texas; Eagle Pass, Del Rio, Uvalde, Kingsville, Alice, and Beeville in South Texas; Sherman, Denison, Gainesville, Mineral Wells, Graham, Stephenville, and Corsicana in North Texas; and Canyon, Pampa, Borger, Childress, and Perryton in the Panhandle.
Eligibility is confirmed by the USDA’s official rural eligibility map. Contact us for a quick eligibility check on your specific property address — we can confirm in minutes whether your project qualifies.
How to Apply for a USDA B&I Loan in Texas
The USDA B&I loan process involves both the lender and the USDA Rural Development Texas state office. We handle the entire application process on your behalf. You do not need to navigate federal bureaucracy on your own. The typical process works as follows: we begin with an initial consultation to review your project, confirm USDA eligibility, and determine if B&I is the right program. We then prepare and submit the complete USDA application package including business plan, financial projections, environmental review, and real estate documentation. The USDA Texas state office reviews the application and issues a conditional commitment, typically within 30 to 60 days. Once the guarantee commitment is issued we close and fund the loan. Total timeline from application to closing is typically 60 to 90 days.
We have managed hundreds of USDA B&I applications in Texas over 26 years and know exactly what rural development officers need to approve a loan efficiently. Working with an experienced USDA lender dramatically reduces the time and complexity of the process.
Get a USDA B&I Loan Quote for Your Texas Rural Property
If your commercial property or business is in a rural Texas community, USDA B&I financing may offer you the best terms available in the market. Call 877-895-3634 or apply online for a same-day response. We will confirm eligibility, explain the program in plain language, and let you know within 24 hours whether USDA B&I is the right fit for your project. No upfront fees — Texas direct commercial lender since 1998.