Government USDA
Bridge Loans
Grays Peak’s United States Department of Agriculture (USDA) bridge loans offer immediate financial support for equity requirements, acquisition costs, and short-term capital needs until long-term financing is obtained.
Awaiting a loan under the USDA guaranteed program?
Get Funds Faster with Grays Peak
Bridge the gap between application and approval with a short term bridging loan of $2.5m to $19m. Get fast access to the capital your business needs and start your growth plans today. We work collaboratively with your USDA lender to provide funds before the USDA has approved the guarantee. These fast and flexible funds mean that you can start your project quickly, instead of waiting several months for your approval to come through. We support loans across the full suite of USDA guaranteed business programs including the Agriculture Innovation Center Program, the Business and Industry Guarantee (B&l) programs, the Rural Business Investment Program (RBIP), the Community Facilities Guaranteed Program and the Rural Energy for America Program (REAP).
Why choose Grays Peak For a USDA bridge loan?
Accelerate your growth plans
Secure funds now and get going today, without the delay of waiting for the USDA loan program
Accelerate your growth plans
Secure funds now and get going today, without the delay of waiting for the USDA loan program
Accelerate your growth plans
Secure funds now and get going today, without the delay of waiting for the USDA loan program
USDA Bridge Loans: How Do They Work?
Grays Peak can accelerate cash ahead of your USDA loan in two different ways:
1
Your USDA lender has approved your loan and you are waiting for the USDA to provide a guarantee – this takes three to six months, so we bridge the gap
2
You do not have a USDA lender yet, but need cash to start your project (property purchase, machine equipment) – in this instance we work with a USDA approved lender and bridge the gap until the USDA provides a guarantee
FAQs
What are the different USDA guaranteed loan schemes and which ones does Grays Peak support?
There are a number of different guaranteed lending schemes supported by the US Department of Agriculture, both for businesses and individuals – the full list of programs can be found here.
Grays Peak supports several of the programs aimed at supporting businesses and these include:
- Business and Industry Loan Guarantees
- Rural Energy for America Guaranteed Loan Program
- Community Facilities Guaranteed Loan Program
- Water and Waste Disposal Loan Guarantees
For more information about the specific programs that we support and to find out whether your business qualifies, please get in touch with one of our lending experts.
What types of businesses are best suited to a USDA bridge loan?
Most businesses that have applied for a loan under the USDA guaranteed lending program will be a good fit for a USDA bridge loan.
Loosely, the criteria for a USDA B&I guaranteed loan includes:
- For profit or non-profit businesses
- Co-operatives
- Federally recognised tribes
- Public bodies
- Individuals engaged or proposing to engage in a business
If you are in the process of applying for a loan under the USDA guaranteed lending program, it is worth getting in touch with one of lending experts and finding out more about how a USDA bridge loan could sit alongside your application and support your growth plans.
What are the business requirements for a USDA Business and Innovation (B&I) loan?
To apply for a loan under the USDA B&I scheme a business must be located in an eligible area, defined as:
- Rural areas, not in a city or town, with a population of more than 50,000; or
- Headquartered in a larger city, as long as the project is located in an eligible rural area
Eligible use of funds include, but are not limited to:
- Purchase and development of land, buildings and associated infrastructure for commercial or industrial properties
- Business conversion, enlargement, repair, modernization or development
- 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 retain jobs
This is not an exhaustive list and you may face additional requirements specific to your USDA lender. If you think you may be a good fit for a USDA loan, reach out to lending experts who will be able to advise on next steps.
How to apply for a USDA bridge loan
The first step is to get in touch. If you think a USDA bridge loan would be a good fit for your business, you can reach out to a member of our expert lending team or use this form to request a chat.
We can then liaise with your existing USDA lender and obtain the relevant information we need to move things forward.
What is the USDA Business and Innovation (B&I) guaranteed loan program?
USDA B&I is a program which offers guarantees to commercial lenders, designed to support credit-worthy rural businesses obtain much-needed loans to grow their businesses. Improved access to capital for these businesses is part of the USDA’s aim of creating and retaining jobs in rural America.
What is the USDA Rural Energy for America Program (REAP)?
USDA REAP provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems, or to make energy efficiency improvements.
Agricultural producers may also apply for loans to invest in new, energy efficient equipment and new systems for agricultural production and processing.
