OneRD Loan Guarantee Initiative

Benefits of USDA Guaranteed Lending

We guarantee rural futures.

Often in times of economic downturn, rural economies are the first to feel loan financing pressures and the last to receive economic relief. Empowered by our services, the OneRD Guarantee Loan Initiative provides an energizer for rural Lenders and economies facing uncertainty. The USDA guarantee is backed by the full faith and credit of the US Treasury, guaranteeing the debt obligation of 80% of loan amounts.

USDA OneRD

Guarantee Loan Initiative

The United States Department of Agriculture (USDA) Rural Development is dedicated to improving the economic stability and quality of life in rural communities across the United States. Through OneRD, lenders can expand commercial lending while decreasing risk and increasing liquidity.

Visit the OneRD Guarantee website here.

  • This program provides loan guarantees to eligible lenders to develop essential community facilities in rural areas.

    Total Loan Amount: $100M

    Percentage of Loan Guarantee: 80%

  • This program helps private lenders provide affordable financing to qualified borrowers to improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas.

    Total Loan Amount: $50M

    Percentage of Loan Guarantee: 80%

  • This program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.

    Total Loan Amount: $25M

    Percentage of Loan Guarantee: 80%

  • This program offers loan guarantees to lenders for their loans to rural businesses.

    Total Loan Amount: $25M

    Percentage of Loan Guarantee: 80%

Benefits to Lenders

By accessing the USDA OneRD Loan Guarantee Initiative through Rural Guarantee, Lenders can:

  • Expand your commercial loan portfolio while significantly reducing your risk.

  • Increase your lending capacity - 80% guaranteed portion of any approved loan does not count against your legal lending limit.

  • Offer competitive interest rates and terms to hesitant borrower.

  • Receive an immediate influx of capital through secondary markets.

Benefits to Borrowers

With a loan through the USDA OneRD Loan Guarantee Initiative,
Borrowers can:

  • Access to additional financing opportunities for rural projects.

  • Negotiate interest rates, prepayment terms, and expanded loan terms - up to 40 years for some asset types - with their lender of choice.

  • Discuss reduced equity requirements with their lender thanks to government risk mitigation.

Benefits to Rural Communities

The objective of the USDA OneRD Program is to “increase private investment in rural businesses and economic development projects” throughout the country. 

The program is uniquely situated to maintain and create jobs, support economic development, and provide services and infrastructure while mitigating risk for rural lenders and instilling confidence in rural development opportunities.

Who’s Included

Rural Areas that have a population density of no more than 50,000 people and are not located within or adjacent to an urbanized area (an area with a population of 50,000 or more) or an urban cluster (an area with a population between 2,500 and 50,000).