5.26.10: But the USDA B&I Program Has Stimulus Money — for One Week Only!

Karen McDonnell, Business Program Specialist for the N.Y. office of the USDA, reports that although the USDA B&I loan guarantee program has officially run out of stimulus money, an allocation of stimulus money will be available for applications received during the week of June 7, 2010. Ms. McDonnell reminds applicants that the probability of receiving stimulus funds for a project is related to how well the project is “scored” by the USDA. Factors involved in scoring include job creation/retention, demographic characteristics of the location for the project, and how the lender structures the loan, among other factors.

Ms. McDonnell noted the benefits of applying for stimulus funds:

If the project scores well, the loan may be eligible for a 90% guarantee up to $10 million (versus 80% up to $5 million and 70% up to $10 million without stimulus).

Regardless of how well the project scores, the guarantee fee can be reduced from 2% to 1%.

Regardless of how well the project scores, the annual renewal fee of one-quarter percent can be eliminated.

“We have two projects moving through the USDA application process to meet the June 7th application timeline,” commented Michael D. Sneden, Executive Vice President of ValueXpress. “Both transactions have merit, particularly a beverage distributor located in a rural area of Mississippi. The project is in a high-impact area and scored very well. We have indications from Washington, D.C. that this project is a strong candidate for stimulus money, and we look forward to it qualifying for stimulus funds.”

This entry was posted in Michael D. Sneden, The Banker's Mortgage Conduit, Valuexpress. Bookmark the permalink.

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