USDA B&I Loan Calculator

Project Parameters ?Enter total project cost and requested B&I loan amount. The calculator determines guarantee percentages, fees, and equity requirements based on FY2026 program rules published in the Federal Register (91 FR 11272).

Total Project Cost ?All-in cost including land, construction, equipment, soft costs, and contingency. This figure drives equity calculations and the sources-and-uses funding stack.

Requested Loan Amount ?Maximum $25M ($40M for qualifying ag cooperatives). Guarantee is 85% for loans under $5M and 80% for $5M to $25M under FY2026 rules. Auto-calculated from project cost × LTC ratio. Edit either field — the other updates automatically.

LTC

Business Status ?Existing businesses: 10% balance sheet equity. Startups: 20% (or 25% if requesting guarantee before construction completion). New businesses with binding sales contracts may qualify at 10%. Per §5001.105(d), intangible assets are no longer deducted under the OneRD framework.

Primary Use of Funds ?Sets maximum allowable term. Real estate: 30 yr. Equipment/machinery: 15 yr (or useful life). Working capital: 7 yr. All B&I loans must fully amortize. These are typical maximums accepted by USDA. The regulatory ceiling is 40 years or the justified useful life, whichever is less (§5001.402(a)).

Interest Rate (%) ?Negotiated between borrower and lender. Most B&I loans price at WSJ Prime + 1% to 3%. Auto-populated from FRED at Prime + 0.75% (currently ~7.50%). Fixed, variable, or combination permitted. USDA requires rates not exceed those charged to comparable non-guaranteed borrowers (§5001.401).

Loan Term (years) ?Cannot exceed the justified useful life of the project or 40 years, whichever is less (§5001.402(a)). Typical terms: 30 yr real estate, 15 yr equipment, 7 yr working capital. Balloon payments and call provisions are prohibited. All B&I loans must fully amortize.

Interest-Only Period ?During IO, monthly payments cover interest only. Principal amortization begins after the IO period. Common during construction or lease-up (12 to 36 months typical).

Interest-Only Months Max 36 per §5001.402(b)(3)

Amortization After IO (years)

Construction Draw Schedule ?Model phased construction draws. Interest accrues on cumulative drawn balance. Requesting Loan Note Guarantee before construction completion adds a one-time 0.50% fee on the guaranteed portion per §5001.454(c). This fee is in addition to the standard guarantee fee at issuance. +0.50% Fee

Construction Period (months)

Define draw percentages per phase. Interest accrues on cumulative drawn balance at the stated rate.

Phase	Month	Draw %	Cumulative

Cash Flow & Debt Service Coverage ?Enable to enter annual NOI and existing debt for DSCR analysis. USDA does not mandate a specific minimum DSCR, but lenders typically require 1.20x to 1.25x. The thresholds shown reflect industry underwriting convention, not regulatory requirements.

Annual Net Operating Income ?Gross revenue minus operating expenses, before debt service, depreciation, and income tax. For startups, use the stabilized-year projection from your feasibility study.

Other Annual Debt Payments ?Total annual payments on all existing obligations (loans, lines of credit, capital leases) that remain outstanding after this B&I loan closes.

Distressed Community / Persistent Poverty ?Reduces fees: 1.0% initial guarantee fee (vs. 3.0%) and 0.50% annual retention (vs. 0.55%). Important: reduced-fee loans receive only 80% guarantee regardless of loan size. Qualifying criteria include persistent poverty counties, tribal lands, areas with unemployment at 125%+ of national rate, distressed communities per EIG index, and areas with long-term population decline. Lender must request reduced fees.