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USDA is United States Department of Agriculture which provides loans for various needs especially business and Industry guarantee loans. This loan is provided to develop, improve or finance business and industries to lower the unemployment rate. This is done by providing quality loans in rural areas to improve economic conditions of certain communities. The funds may be used for working capital, machinery, debt refinancing and real estate.

For receiving these funds the borrower must be engaged in business that will create employment opportunities, improve the economic environment, especially in rural areas, promote conservation and other such environmental friendly techniques, reduce dependence on non-renewable energy resources and promoting renewable energy resources. The business should pay at least $9.07 per hour. In case of individual borrower, one must be US citizen and in case of corporations, at least 51% must be owned by US citizen.

The funds can be used for business and industrial acquisitions, for increasing employment opportunities through expansion, modernization and development of business etc. The program provides a maximum of 80% guarantee for loans of up to $5 million or less, 70% guarantee for loans between $5-10 million, 60% guarantee for loans more than 60%. The total funding in case of a single borrower cannot exceed $10 million, but can go up to $25 million in certain exceptions whereas the secretary can grant around $40 million for some rural co-operative organizations.

The time for loan repayment should not exceed 30 years in case of real estate and 7 years in case of working capital repayment. The interest rates are subject to the institution review and approval. The loan requires collateral and one has to pay the annual renewal fee which maintains the enforceability of the guarantee.

The types of USDA business programs are-

Hence, USDA provides funding for various needs of rural areas and hence help in increasing employment opportunities.