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 USDA Business and Industry Guarantee

Eligible Applicants

Any for-profit or non-profit business.


Eligible Use

Land acquisition, site improvements, acquisition of existing building, building renovation, leasehold improvements, new construction, machinery & equipment, working capital, refinancing (restrictions apply), and certain soft costs.


Loan Amount

80% guaranty on loans of $5 million or less; 70% guaranty on loans between $5 million and $10 million; 60% guaranty on loans between $10 million and $25 million.


Interest Rate

The rate is negotiated between the bank and the borrower, and may be fixed or variable. However, variable rates cannot be adjusted more than quarterly.



Up to seven (7) years for working capital; up to 15 years for machinery and equipment; up to 30 years for real estate.


Equity Requirement

For existing businesses (more than two years of operations) borrower must show tangible balance sheet equity in the business of at least 10%.  For start-ups or changes in ownership, borrower must show tangible balance sheet equity in the business of at least 20%. Equity is developed in accordance with generally accepted accounting principles.


Job Criteria

This guaranty program does not require any specific job creation or retention as part of the project.


SEDA-COG charges a 1% application fee on projects up to $5 million, a 0.75% application fee on projects between $5 million and $10 million, or a 0.5% application fee on projects between $10 million and $25 million.  SEDA-COG also charges a $2,500 retainer fee which is refundable in most circumstances.  The USDA also charges a one-time guaranty fee of 2% of the guaranty amount and an annual 0.25% fee.

If you feel that you meet these requirements, and your business is located (or will be locating) anywhere in the State of Pennsylvania and are interested in exploring how this loan program can assist you, please fill out this form, and we will get back to you as soon as we can. You can also contact us through e-mail, although for serious inquiries, please complete the form.