What, No Farm?

The Agriculture Department has its eye on business, too.
Magazine Contributor
2 min read

This story appears in the March 2001 issue of Entrepreneurs Start-Ups magazine. Subscribe »

Q: I've been operating a manufacturing company for more than 20 years in a small, rural Southeast town. To secure a lucrative high-tech contract, I need just over $5 million to revamp my facility. My local lender says the deal is too big, but several large bank and say the deal is too small. Where can I go next?

A: Stay where you are-this horse isn't dead yet. Before moving on to greener pastures, give your local lender another chance. Request that they check into making you the loan under a relatively unknown program offered through the U.S. Department of Agriculture known as the Business and Industry Guaranteed Loan Program. This program is designed to allow both bank and nonbank lenders to make quality loans to rural areas with less overall risk because a portion of the capital is guaranteed by the U.S. government. Also, these loans are extremely attractive to both small banks and large non-bank lenders because they can sell off the guaranteed portion of the loan for a fee. Most professionals need to be reminded how creative their fields can be, and lenders are no different. For details, visit the Agriculture Department's business programs Web site at www.rurdev.usda.gov/rbs/busp/b&i_gar.htm.

Doug Hood is co-founder of Rainmaker Capital Corp., a capital acquisition consulting company in Cartersville, Georgia. Co-founder Marilea S. Hood contributed to this article. Send questions or anecdotes via e-mail to doughood@rainmakercapital.com.


More from Entrepreneur

We created the SYOB course to help you get started on your entrepreneurial journey. You can now sign up for just $99, plus receive a 7-day free trial. Just use promo code SYOB99 to claim your offer.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Entrepreneur Store scours the web for the newest software, gadgets & web services. Explore our giveaways, bundles, "Pay What You Want" deals & more.

Latest on Entrepreneur