Sunrise Banks is committed to fostering economic growth in rural Minnesota and South Dakota through the USDA’s One Rural Development (OneRD) Guarantee loan program. This initiative provides access to affordable capital, enabling the prosperity of rural communities.
Our team of local lending experts can help you determine your eligibility and navigate through the required processes and forms to get your project off the ground.
For many projects, the OneRD Guarantee may be the only pathway to success, underscoring its critical role in economic vitality and job creation in rural communities. At Sunrise Banks, we believe in the potential of rural America and are dedicated to turning opportunities into reality.
USDA One Rural Development Guaranteed Loan Programs:
The USDA Business & Industry (B&I) Program is designed to improve the economic and environmental climate in rural communities through the development, improvement, or financing of business, industry, and employment.
Learn More<h3>Who can qualify for these loan guarantees?</h3>
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For-profit or non-profit businesses
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Cooperatives
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Federally recognized Tribes
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Public bodies
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Individuals engaged or proposing to engage in a business
<h3>Eligible uses include (but are not limited to):</h3>
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Business conversion, enlargement, repair, modernization, or development.
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The purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties.
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The purchase and installation of machinery and equipment, supplies or inventory.
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Debt refinancing when such refinancing improves cash flow and creates jobs.
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Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.
USDA REAP loan guarantees are designed to support agricultural producers and rural small businesses in investing in renewable energy systems and energy efficiency improvements.
Learn More<h3>Who can qualify for these loan guarantees?</h3>
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Rural small businesses
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Agricultural producers
<h3>Eligible uses include (but are not limited to):</h3>
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The purchase and installation of renewable energy systems.
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The purchase, installation and construction of energy efficiency improvements.
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Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.
The USDA Community Facilities (CF) Loan Program is designed to provide affordable funding for the development of essential community facilities in rural areas. These facilities are defined as those providing essential services to the community, like healthcare, education, or public safety, and must be located in rural areas.
Learn More<h3>Who can qualify for these loan guarantees?</h3>
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Public bodies
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Community-based non-profit corporations
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Federally recognized Tribes
<h3>Eligible uses include (but are not limited to):</h3>
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Funds can be used to purchase, construct, and / or improve essential community facilities, purchase equipment, and pay related project expenses.
USDA Water & Waste Disposal Loan Guarantees are designed to help private lenders provide affordable financing for projects that improve access to clean, reliable water and waste disposal systems in rural areas
Learn More<h3>Who can qualify for these loan guarantees?</h3>
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State and local governments
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Non-profit organizations
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Federally recognized Tribes
<h3>What facilities are eligible?</h3>
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Drinking water
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Sanitary sewer
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Solid waste disposal
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Stormwater disposal
<h3>Eligible uses include (but are not limited to):</h3>
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Funds can be used for construction projects and can cover costs such as engineering fees and land, legal, and environmental analysis costs. Funds can also be used for non-construction projects, like:
- • Equipment to operate, maintain, or protect facilities
- • Professional service fees for engineering and environmental services
- • Debt refinancing
Frequently Asked Questions
The USDA’s One Rural Development (OneRD) Guarantee loan program is a federally backed lending plan designed to support economic well-being in certain rural and suburban areas. It includes several initiatives, including the Business and Industry (B&I) Loan Program, Rural Energy for America Program (REAP), Community Facilities (CF) Loan Program, and Water & Waste Disposal Loan Guarantees.
USDA Rural Development loan programs support rural communities by offering direct financing, loan guarantees, and grants that make it easier to fund essential projects. These programs work by reducing lender risk, allowing businesses to secure funding for equipment, real estate, and working capital.
Each USDA Rural Development loan program has different eligible uses, listed below.
Business and Industry (B&I) Loan Program
- Business conversion, enlargement, repair, modernization, or development.
- The purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties.
- The purchase and installation of machinery and equipment, supplies or inventory.
- Debt refinancing when such refinancing improves cash flow and creates jobs.
- Business and industrial acquisitions when the loan will maintain business operations and create or save jobs.
Rural Energy for America Program (REAP)
- The purchase and installation of renewable energy systems.
- The purchase, installation and construction of energy efficiency improvements.
- Agricultural producers may also use guaranteed loan funds to install energy efficient equipment and systems for agricultural production or processing.
Community Facilities (CF) Loan Program
- The purchase, construction, and / or improvement of essential community facilities.
- The purchase of equipment and payment of project-related expenses.
Water & Waste Disposal Loan Guarantees
- Drinking water
- Sanitary sewer
- Solid waste disposal
- Stormwater disposal
Qualifying for a USDA Rural Development loan depends on the specific program, the applicant’s financial profile, and the project’s location and purpose. Reach out to the experts at Sunrise Banks for specific inquiries.
USDA Rural Development doesn’t set an official “minimum” credit score for its loan programs. Credit requirements depend on the type of loan and what the lender or the USDA’s Guaranteed Underwriting System (GUS) requires.
If you’d like to learn more about how your credit score may affect your chances of getting a USDA loan, reach out to our team at Sunrise Banks.
To qualify for a USDA rural development loan program, businesses generally must be located in USDA-designated rural areas, demonstrate the ability to repay and meet program-specific requirements — including financial stability and creditworthiness.
Factors like being outside eligible areas, poor financial health or inability to show repayment ability can disqualify applicants. Requirements vary by program, so reach out to the experts at Sunrise Banks for specific information.
Get in touch
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