Business and Industry Program for Senior Living Facilities

USDA bolsters a project’s private credit structure through the guarantee of quality loans which provides access to an active secondary market for B&I guaranteed loans. The program is effectively not a construction funding mechanism because the B&I guarantee is typically not in place until the completion of construction. Hence it should be considered a permanent debt funding mechanism.


This program provides a guarantee for new construction, rehabilitation, acquisition or refinance of the following types of senior living facilities in towns with a population less than 50,000: for-profit and nonprofit Independent Living, Assisted Living, Assisted Living with Alzheimer’s Care, Skilled Nursing Facilities or a combination thereof.


    The USDA’s Business & Industry Program is a guaranteed loan program intended to help finance and develop business and industry in rural communities by providing a government guaranteed loan. The application process can generally be completed in 4-5 months, and is completed in two phases: the pre-application and full-application phases. Applications are submitted to the Rural Development office in the state in which the prospect is located. The Business & Industry program guarantees 60 to 80 percent of the loan’s value, depending upon its size.


    Since its inception in the 1970’s, the USDA’s Business & Industry Program has provided more than $18 billion dollars in loans. In 2011 alone, the program provided $1.4 billion in loan closings.


    Lument represents one of the few “non-bank” USDA Business & Industry approved lenders in the country. Moreover, as an investment banking firm, Lument’s direct access to capital markets maximizes the program’s benefits. For example, most banks are both reluctant to participate in a 30-year obligation and unfamiliar with senior living credit analyses. Lument can provide full 30-year funding; and we have over 25 years of experience meeting senior living organizations’ needs with financing structures customized to their financial strengths and market conditions.

In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.

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