Ocean Pacific Capital
USDA Financing

Celebrating 40 Years

USDA B&I financing can be difficult to obtain without our years of trusted experience. Since 1977, Ocean Pacific Capital has provided USDA financing for commercial property investors of many different types. The current USDA B&I program can provide clients that own commercial properties in areas generally with populations of 50,000 or less with fixed rate, permanent financing at competitive interest rates and generally higher LTV ratios than traditional commercial loans.

Ocean Pacific Capital also provides bridge or private money loans for commercial properties in rual areas that may need time for lease-up stabilization, have time sensitve issues or other special situations. These properties may not immediately qualify for USDA financing but the USDA B&I program can be used as a take out for these short term loans. We also provide other financing programs for commercial properties and situations that do not fit USDA guidelines.

What kind of businesses qualify for USDA B&I loan guarantees?

•  For-profit businesses

•  Nonprofits

•  Cooperatives

•  Federally-recognized Tribes

•  Public bodies

What is an eligible area?

•  Any area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town

•  The borrower's headquarters may be based within a larger city as long as the project is located in an eligible rural area

How may funds be used?

Eligible uses include but are not limited to:

•  Business conversion, expansion, repair, modernization or development

•  Acquisition and development of land, rights-of-way, easements, buildings, or facilities

•  Purchase of equipment, leasehold improvements,machinery, supplies, or inventory

•  Debt refinancing in situations where refinancing improves cash flow and saves or creates jobs

•  Business and industrial acquisitions when the loan will create or save jobs

**Guaranteed loan funds MAY NOT be used for:

•  Lines of credit

•  Owner-occupied homes

•  Golf courses

•  Gambling facilities such as race tracks, casinos, etc

•  Churches, temples, houses of worship, church-controlled organizations or charitable organizations

•  Fraternal organizations

•  Agricultural production, with certain exceptions

**Ocean Pacific Capital has other non-USDA programs for the above property types.

 

What collateral is required?

Collateral must have documented value sufficient to protect the interest of the lender and the Agency. The discounted collateral value will normally be at least equal to the loan amount. Lenders will discount collateral consistent with sound loan-to-value policy. Hazard insurance is required on collateral (equal to the loan amount or depreciated replacement value, whichever is less).

Maximum Advance Rates per collateral type

•  Real Estate: 80% of fair market value

•  Equipment: 70% of fair market value

•  Inventory: 60% of book value (raw inventory and finished goods only)

•  Accounts Receivable: 60% of book value (less than 90 days)