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Revitalizing Rural America

In the heart of America's rural communities, where the spirit of entrepreneurship thrives, our USDA Rural Development loans, sometimes called USDA RD loans, are the key to turning dreams into reality. Midland States Bank is here to provide the capital and support you need to flourish, strengthen your community, and create lasting prosperity.

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What a USDA Rural Development Loan Is & How It Works

A USDA Rural Development loan is part of a government-backed loan program designed to serve rural communities by helping eligible businesses obtain access to business capital. Through this program, Midland States Bank is able to finance higher loan amounts with competitive interest rates and longer repayment terms for a variety of different qualifying businesses.

About the USDA Rural Development Loan Program

The USDA Rural Development loan program offers financing for a wide variety of rural businesses ranging from $2 million to $25 million, with competitive fixed or variable interest rates and longer repayment terms. Loan terms cannot exceed 40 years. For a more detailed estimate, contact us today and a loan specialist will be happy to assist you.

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Eligibility Criteria for USDA Rural Development Financing

While specific terms may vary, certain provisions generally apply to all USDA Rural Development loans.

  • Business Location: While the borrower’s headquarters can be based in a larger city, the project for the loan must be located in an eligible rural area within the United States, with a population of 50,000 or less in order to qualify for a USDA Rural Development loan.
  • Business Type: Qualifying businesses include, for- or nonprofit businesses, cooperatives, federally-recognized Tribes, public bodies, and individuals engaged – or proposing to engage – in an eligible rural business.
  • Business Contingencies: Borrowers must demonstrate that loan funds will remain in the U.S., and the facility being financed will create new – or save existing – jobs for rural U.S. residents.
  • Use of Funds: The USDA Rural Development loan program offers a variety of eligible uses for loan funds, including:
    • Business and land development for commercial or industrial use,
    • Machinery, equipment, and inventory purchase,
    • Debt refinancing to create jobs and cash flow,
    • Business acquisition, and more.

See full details in FAQ section below.

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You Have Questions, We Have Answers

The USDA Rural Development loan program offers a wide range of eligible uses for loan funds, including business development, growth, modernization, conversion, or repair; land purchase and development, buildings and associated infrastructure for commercial or industrial use; machinery purchase and installation, equipment, supplies, and inventory; refinance debt to create cash flow and create jobs; and business or industry acquisition when the loan will maintain operations, and create or save jobs.

A USDA Rural Development loan may not be used for the following purposes: lines of credit, owner-occupied or rental housing, golf courses or infrastructure, gambling facilities, church organizations, fraternal organizations, agriculture production (with certain exemptions), beneficiary payment or distribution, lending, investment, or insurance companies.

USDA Rural Development loans offer financing ranging from $2 million to $25 million.

USDA Rural Development loans offer financing with competitive fixed or variable interest rates and longer repayment terms. Loan terms cannot exceed 40 years. For a more detailed estimate, contact us today and a loan specialist will be happy to assist you.

Collateral must have documented value sufficient to protect the interest of the parties involved.

Yes, the USDA Rural Development loan program allows refinancing of existing debt, subject to certain conditions and limitations. Partnering with a rural development financing lender, such as Midland States Bank, can help answer any potential questions you may have.

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Ready to Get Started?

Your situation is unique, and the ideal USDA Rural Development loan program depends on your specific needs and qualifications. Seeking guidance from an SBA Preferred Lender such as Midland States Bank will help you explore available options and select the best-suited loan program. If you're ready to take the next step, contact us today and a loan specialist will be happy to assist you.

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