Michigan USDA Business Loans for Food Processing, Manufacturing & Healthcare: $2M-$25M Rural Financing (2026)
Need $2 million to $25 million for your Michigan food processing, manufacturing, or healthcare business? If you're located outside Detroit, Grand Rapids, or Ann Arbor city cores, you likely qualify for USDA Business & Industry (B&I) loans. 97% of Michigan qualifies as "rural" under USDA guidelines—including most suburban areas and many places you'd never consider rural.
USDA B&I loans offer higher loan amounts than SBA (up to $25M vs. $5M cap), longer terms (up to 30 years for real estate), and competitive rates (currently 8-11%). We've helped Michigan food processors, manufacturers, healthcare facilities, and rural operations secure over $1 billion in financing through USDA and SBA programs.
Quick Qualification Check: If your Michigan business is outside the immediate downtown cores of Detroit, Grand Rapids, Ann Arbor, Lansing, or Flint AND you need $2M+ for real estate, equipment, expansion, or business acquisition, you likely qualify. Call (855) 998-5874 for free eligibility verification in under 5 minutes.
USDA Business Loan Amounts, Rates & Terms (2026)
Loan Amounts: $2,000,000 to $25,000,000 (some projects up to $40M with special approval)
Interest Rates: Negotiable between lender and borrower, currently ranging 8% to 11% depending on loan size, business strength, collateral, and project scope. Rates are typically fixed or variable based on prime rate.
Loan Terms:
Real Estate: Up to 30 years
Equipment/Machinery: Up to 15 years (up to 20 years for long-life equipment)
Working Capital: Up to 7 years
USDA Guarantee: Up to 80% of loan amount (allows lenders to take more risk on larger loans)
Down Payment: Typically 10-20% depending on project, collateral, and business cash flow
Fees: USDA guarantee fee of 2-3% of guaranteed portion (can be financed into loan)
Current Market Data: USDA approved 142 Michigan B&I loans in FY 2024 totaling $387 million. Average loan size was $2.7M. Food processing, manufacturing, and healthcare businesses represented 73% of approved loans.
Do You Qualify? USDA Business Loan Requirements
Geographic Eligibility: Does Your Michigan Location Qualify?
This is the #1 question. Here's the truth: 97% of Michigan land area qualifies as "rural" under USDA guidelines. This includes many areas you would never consider rural.
What Qualifies as Rural:
Cities and towns with populations under 50,000
Areas outside the urbanized boundaries of cities over 50,000
Many suburban areas of major metros
All of Northern Michigan and the Upper Peninsula
Most of rural and agricultural Michigan
Michigan Cities/Areas That Generally QUALIFY:
Monroe, Livingston, Lenawee, Washtenaw (outside Ann Arbor core), Jackson, Calhoun, Kalamazoo (partial), Battle Creek
Muskegon, Holland, Ottawa County (partial), Kent County (outside GR core), Allegan
Genesee County (outside Flint core), Saginaw County (partial), Bay City
Traverse City, Petoskey, Alpena, Marquette, Escanaba, Houghton, Iron Mountain
Most of Macomb County (outside urban core), most of Oakland County (outside urban core)
Virtually all counties north of Grand Rapids and Lansing
All of the Upper Peninsula
Areas That Generally DO NOT Qualify:
Downtown Detroit and immediate urban core
Downtown Grand Rapids city center
Ann Arbor city center
Lansing city center
Flint city center
Important: Even if you're near these cities, you may still qualify. USDA eligibility is determined by specific address, not just city name. Many suburbs of Detroit, Grand Rapids, and other metros ARE eligible.
Check Your Address: We can verify your exact address eligibility in under 5 minutes. Call (855) 998-5874 or email info@lvrgllc.com with your business address.
Business Eligibility Requirements
Business Type: For-profit businesses including corporations, partnerships, cooperatives, LLCs, and sole proprietorships. Must be located in eligible rural area.
Industry: Food processing, manufacturing, and healthcare are USDA's top priorities. Nearly all other industries qualify including construction, professional services, retail, hospitality, and more. Cannabis and gambling businesses do not qualify.
Business Age: Existing businesses with 2+ years operating history preferred. Startups may qualify with strong business plan and experienced management.
Annual Revenue: Typically $1,000,000+ in annual revenue for existing businesses. Higher revenue required for larger loan requests.
Cash Flow: Debt Service Coverage Ratio (DSCR) of 1.25x or higher required. Business must demonstrate ability to repay debt from operations.
Credit Requirements: Personal credit score of 650+ for owners with 20%+ equity. Some flexibility with strong compensating factors (cash flow, collateral, experience).
Collateral: Adequate collateral required. First lien on assets purchased with loan proceeds. May require additional business or personal collateral depending on project.
Equity Injection: Minimum 10% owner equity contribution. 20% preferred for stronger applications.
Job Creation/Retention: USDA prioritizes projects that create or retain jobs in rural areas. Projects creating jobs receive more favorable consideration and potentially better terms.
What USDA Business Loans Can Be Used For
Approved Uses:
Purchase of real estate (land, buildings, facilities)
Construction of new facilities or major renovations
Purchase of equipment and machinery
Business acquisitions (buying existing businesses)
Working capital for operations
Debt refinancing (with business expansion component)
Inventory and supplies
Pollution control and environmental improvements
Not Allowed:
Relending or investment purposes
Agricultural production (use USDA Farm Service Agency loans instead)
Projects outside rural areas
Businesses already receiving other federal loan guarantees for same purpose
USDA vs SBA Loans: Which is Right for Your Michigan Business?
Many Michigan business owners qualify for both USDA and SBA financing. Here's how to choose:
Choose USDA B&I Loans When:
You need MORE than $5 million (SBA caps at $5M, USDA goes to $25M+)
Your business is in a rural Michigan location (outside major city cores)
You're creating jobs in rural Michigan (USDA prioritizes job creation)
You need LONGER terms (USDA offers up to 30 years vs. 25 for SBA)
Your project involves food processing, manufacturing, or healthcare
You're doing a large-scale expansion or facility construction
Choose SBA 7(a) or 504 Loans When:
You need LESS than $2 million (SBA processes faster for smaller amounts)
Your business is in urban areas that don't qualify for USDA
You want FASTER closing (SBA typically 45-60 days vs. 60-90 for USDA)
You're buying a franchise or small business acquisition
You need WORKING CAPITAL primarily (SBA 7(a) is better structured)
You want fixed-rate real estate financing under $2M (SBA 504 is optimized for this)
Loan Amount Comparison:
USDA: $2M to $25M
SBA 7(a): Up to $5M
SBA 504: Up to $5M ($5.5M for manufacturing)
Term Comparison:
USDA Real Estate: Up to 30 years
SBA 7(a) Real Estate: Up to 25 years
SBA 504 Real Estate: Up to 25 years
Down Payment Comparison:
USDA: 10-20%
SBA 7(a): 10-15%
SBA 504: 10%
Rate Comparison (Current 2026):
USDA: 8-11% (negotiable)
SBA 7(a): 10-12% (Prime + 2.5-4.5%)
SBA 504: 6.5-8.5% blended (fixed)
Best Strategy: Many Michigan businesses use BOTH programs. For example, use SBA 504 for one property and USDA for a larger expansion project. Or use SBA 7(a) for business acquisition and USDA for major equipment. We help you structure the optimal financing mix.
Top 3 Industries for USDA Business Loans in Michigan
#1: Food Processing & Agricultural Manufacturing (USDA's Top Priority)
Industries: Meat processing and slaughter facilities, dairy processing and cheese production, fruit and vegetable processing and packing, grain elevators and storage facilities, food manufacturing and production, beverage production (breweries, wineries, non-alcoholic), commercial bakeries and baking operations, and farm-to-market processing operations.
Why USDA Prioritizes Food Processing: This is USDA's core mission—supporting rural food and agricultural businesses. Food processing creates jobs in rural areas, supports local farmers and agricultural producers, adds value to agricultural commodities, and strengthens rural economies. USDA gives food processing projects highest priority with fastest approvals and often most favorable terms.
What USDA Finances for Food Processors:
Processing facilities and production plants (new construction or expansion)
USDA/FDA compliant facilities and upgrades
Processing equipment and production lines
Cold storage and refrigeration systems
Packaging and labeling equipment
Working capital for inventory and raw material purchases
Business acquisitions of existing food processing operations
Recent Michigan Examples:
$8.9M USDA loan for meat processing facility expansion in Jackson County (new USDA-inspected processing line, cold storage expansion, 47 jobs created)
$6.4M USDA loan for dairy processing plant in Kent County (cheese production expansion, new packaging line, 31 jobs)
$11.2M USDA loan for fruit processing facility in Southwest Michigan (new processing equipment, cold storage, distribution center, 68 jobs)
$4.7M USDA loan for grain elevator modernization in Saginaw County (storage capacity expansion, new drying equipment, 18 jobs)
$7.8M USDA loan for beverage production facility in rural Oakland County (brewery expansion, canning line, distribution, 39 jobs)
Typical Loan Structure: $3M-$15M range. Terms up to 30 years for facilities, 15-20 years for equipment. Down payment 10-15%. Rates currently 8-10% depending on project strength and job creation.
Key Success Factors: Demonstrate ties to local agricultural producers, show job creation in rural area (USDA loves this), USDA/FDA compliance plan for facilities, experienced food industry management, and strong market demand for products.
Why Choose LVRG for Food Processing Loans: We've structured USDA loans for meat processors, dairy operations, fruit and vegetable packers, and beverage producers. We understand food safety regulations, processing equipment financing, seasonal cash flow in food production, and USDA's priorities for agricultural businesses.
#2: Manufacturing Operations (Largest Job Creator)
Industries: Automotive parts manufacturing and tier 1/2/3 suppliers, metal fabrication and machining operations, tool & die shops, injection molding and plastics manufacturing, CNC machining and precision manufacturing, industrial equipment manufacturing, assembly operations and contract manufacturing, and component manufacturing for various industries.
Why USDA Prioritizes Manufacturing: Manufacturing creates the most jobs in rural Michigan. A single manufacturing expansion can create 30-100+ jobs. USDA views manufacturing as economic development catalyst for rural communities. Manufacturing projects typically need large loan amounts ($5M-$25M) that exceed SBA capacity.
What USDA Finances for Manufacturers:
Industrial facilities and manufacturing plants (50,000-200,000+ sq ft)
Specialized manufacturing equipment and machinery
Production lines and automation systems
Material handling and logistics equipment
Facility expansions and improvements
Business acquisitions of manufacturing operations
Working capital for inventory and raw materials
Recent Michigan Examples:
$14.6M USDA loan for automotive parts manufacturer in Monroe County (120,000 sq ft facility expansion, new production equipment, 87 jobs created)
$9.8M USDA loan for metal fabrication company in Muskegon County (facility purchase, CNC equipment, welding systems, 52 jobs)
$12.4M USDA loan for injection molding operation in Livingston County (new 80,000 sq ft plant, molding equipment, automation, 71 jobs)
$7.2M USDA loan for tool & die shop acquisition in Macomb County (business purchase, equipment upgrade, facility improvement, 34 jobs retained)
$18.3M USDA loan for industrial equipment manufacturer in Kent County (facility construction, production equipment, 96 jobs)
Typical Loan Structure: $5M-$25M range. Terms up to 30 years for facilities, 15-20 years for equipment. Down payment 15-20%. Rates currently 8.5-11% depending on project complexity and job creation.
Key Success Factors: Demonstrate significant job creation (30+ jobs preferred), show strong order backlog or contracts, experienced manufacturing management team, specialized equipment needs that justify large loan, and location in rural Michigan area with available workforce.
Why Choose LVRG for Manufacturing Loans: We've structured USDA loans for auto suppliers, metal fabricators, injection molders, and industrial manufacturers. We understand manufacturing cash flow analysis, specialized equipment financing, large-scale facility projects, and job creation documentation USDA requires.
#3: Healthcare & Medical Facilities (Critical Rural Need)
Industries: Rural hospitals and critical access hospitals, urgent care clinics and medical centers, dental practices and dental service organizations, veterinary hospitals and animal care facilities, nursing homes and skilled nursing facilities, assisted living and senior care facilities, home health care agencies, and specialty medical practices serving rural populations.
Why USDA Prioritizes Healthcare: Rural areas have limited healthcare access. USDA views healthcare facilities as critical infrastructure for rural communities. Healthcare projects create quality jobs and serve underserved populations. USDA offers favorable terms for healthcare facilities that improve rural healthcare access.
What USDA Finances for Healthcare:
Medical facilities and clinics (new construction or purchase)
Hospital expansions and improvements
Specialized medical equipment (imaging, surgical, diagnostic)
Nursing homes and assisted living facilities
Dental office buildings and equipment
Veterinary hospitals and animal care facilities
Medical office buildings for multi-provider practices
Business acquisitions of healthcare operations
Recent Michigan Examples:
$16.8M USDA loan for rural hospital expansion in Northern Michigan (new emergency department, medical equipment, 78 jobs created)
$11.4M USDA loan for assisted living facility construction in Lenawee County (120-bed facility, specialized care equipment, 94 jobs)
$6.7M USDA loan for urgent care medical center in Muskegon County (facility construction, medical equipment, 32 jobs)
$4.9M USDA loan for dental service organization in Kent County (multi-location expansion, equipment, 28 jobs)
$8.2M USDA loan for veterinary hospital in Oakland County (24,000 sq ft facility, advanced equipment, boarding, 41 jobs)
Typical Loan Structure: $3M-$20M range. Terms up to 30 years for facilities, 15 years for medical equipment. Down payment 10-15%. Rates currently 8-10% depending on healthcare type and community need.
Key Success Factors: Demonstrate community healthcare need, show patient demand or service gap, experienced healthcare management and licensed providers, compliance with healthcare regulations, and job creation in underserved rural area.
Why Choose LVRG for Healthcare Loans: We've structured USDA loans for rural hospitals, urgent care clinics, dental practices, and veterinary facilities. We understand healthcare cash flow and reimbursement, medical equipment financing, healthcare regulations and licensing, and USDA's priorities for rural healthcare access.
Other Michigan Industries Using USDA Business Loans
While food processing, manufacturing, and healthcare represent 73% of USDA B&I loans, other industries also qualify:
Construction & Contractors: General contractors, excavation companies, concrete contractors, and specialty trade contractors. Typical use: shop facilities, heavy equipment, and fleet expansion. Loan range: $2M-$8M.
Distribution & Logistics: Warehousing, cold storage, freight operations, and supply chain companies. Typical use: warehouse facilities, material handling equipment, and truck fleets. Loan range: $3M-$15M.
Broadband & Telecommunications: Rural broadband deployment, fiber optic networks, and wireless internet providers. Typical use: infrastructure, equipment, and tower construction. Loan range: $5M-$25M+ (USDA's highest priority infrastructure).
Hospitality & Tourism: Hotels, RV parks, resorts, and event venues in rural tourist areas. Typical use: facility construction, improvements, and equipment. Loan range: $2M-$10M.
Energy & Renewables: Renewable energy projects, biomass facilities, and energy efficiency improvements. Typical use: equipment installation and facility upgrades. Loan range: $3M-$20M.
Professional Services: Large-scale professional service operations serving rural areas including engineering firms and consulting businesses. Typical use: facility purchase and expansion. Loan range: $2M-$5M.
All industries must be located in USDA-eligible rural areas and preferably create or retain jobs.
How to Apply: USDA Business Loan Process
Step 1: Preliminary Qualification (Week 1)
Contact LVRG Business Funding at (855) 998-5874 or info@lvrgllc.com. We'll discuss your project details including loan amount needed, intended use of proceeds, business location and address verification for USDA eligibility, current business financials and cash flow, and preliminary project timeline.
We verify your address qualifies for USDA rural designation, assess your business qualification factors, determine optimal loan structure, and identify best-fit USDA lenders from our network of 25+ institutions.
Timeline: Initial consultation completed within 24-48 hours.
Step 2: Document Collection & Analysis (Weeks 1-2)
Required Documents:
3 years business tax returns (1120, 1120S, 1065, or Schedule C)
3 years personal tax returns (1040) for all owners with 20%+ equity
Current year-to-date profit & loss statement and balance sheet
Business debt schedule (all current business debts)
Personal financial statements for all guarantors
Business plan or project narrative describing intended use of funds
Purchase agreement (if acquiring business or real estate)
Equipment quotes or construction cost estimates
Environmental assessment (Phase I) if purchasing real estate
Business licenses and permits
Articles of incorporation or LLC operating agreement
Resumes for key management
We analyze your financials, prepare comprehensive cash flow projections, identify any documentation gaps or concerns, and begin pre-underwriting analysis.
Timeline: Document collection typically 5-10 days depending on complexity.
Step 3: Loan Package Preparation & Pre-Underwriting (Weeks 2-3)
This is where we add significant value. We prepare complete professional loan package including executive summary, detailed business and project description, comprehensive financial analysis and cash flow projections, collateral analysis and valuation, management team qualifications, and industry and market analysis.
We conduct pre-underwriting to identify potential issues before lender submission, structure the deal to maximize approval odds, and position your business in the strongest possible light.
Timeline: Package preparation typically 7-14 days.
Step 4: Lender Selection & Submission (Week 4)
We submit your packaged loan application to the best-fit USDA-approved lenders from our network. Not all lenders are created equal. We match your specific project to lenders based on their industry expertise and preferences (food processing, manufacturing, healthcare specialists), loan size capabilities, geographic focus and rural lending experience, credit appetite and underwriting flexibility, rate competitiveness, and closing speed and efficiency.
Timeline: Lender selection and submission 2-5 days.
Step 5: Lender Underwriting & Due Diligence (Weeks 4-8)
Lender reviews your application, orders third-party reports including business valuation or appraisal, environmental assessment verification, equipment appraisals if applicable, and financial statement verification.
Lender underwrites the loan analyzing cash flow and debt service coverage, collateral adequacy, credit history and business strength, industry and market conditions, and management capability.
We manage all lender communication and requests, respond to underwriting questions and concerns, negotiate loan terms and conditions, and keep the process moving efficiently.
Timeline: Lender underwriting typically 3-6 weeks depending on project complexity.
Step 6: USDA Review & Approval (Weeks 8-10)
Once lender approves, they submit the loan application to USDA Rural Development for guarantee approval. USDA reviews for program eligibility including rural location verification, eligible use of proceeds, job creation/retention impact, and compliance with USDA regulations.
USDA issues Conditional Commitment outlining terms and conditions of guarantee. Any conditions must be satisfied before closing.
Timeline: USDA review and approval typically 2-3 weeks.
Step 7: Closing Preparation (Weeks 10-12)
Satisfy all loan conditions from lender and USDA, complete all third-party reports and due diligence, finalize loan documents and closing requirements, obtain required insurance (property, liability, flood if applicable), and prepare for closing.
We coordinate with all parties including lender, attorneys, title company, and ensure smooth path to funding.
Timeline: Closing preparation typically 1-3 weeks.
Step 8: Closing & Funding (Week 12)
Sign final loan documents and closing paperwork. Lender funds the loan and USDA guarantee becomes effective. You receive loan proceeds and begin your project.
Total Timeline: USDA business loans typically close in 60-90 days from complete application submission. Complex projects (multiple properties, large construction projects, or unique structures) may take longer. Simple projects with strong financials can close faster.
How We Speed Up the Process: Our pre-underwriting and professional packaging eliminate the most common delays including incomplete documentation, incorrect financial presentation, wrong lender match, and preventable underwriting issues. This saves 3-6 weeks compared to going direct.
USDA Business Loan Fees & Costs
Understanding total costs helps you budget appropriately for your project.
USDA Guarantee Fee: 2-3% of the guaranteed portion of the loan (not the entire loan amount). For example, on a $5M loan with 80% USDA guarantee, the guarantee fee would be 2-3% of $4M (the guaranteed portion) = $80,000-$120,000. This fee can be financed into the loan and paid over time.
Lender Origination Fee: 1-2% of loan amount. Varies by lender and project. Example: $50,000-$100,000 on a $5M loan.
Third-Party Costs:
Business valuation or appraisal: $3,000-$15,000 depending on project size
Environmental assessment (Phase I): $2,000-$5,000
Environmental assessment (Phase II if needed): $5,000-$25,000+
Legal fees: $3,000-$10,000
Title insurance and closing costs: $2,000-$10,000
Broker Fee (LVRG): $0 to you. We're compensated by the lender. Zero cost to your business.
Total Estimated Costs: Typically 3-5% of loan amount including all fees. On a $5M loan, expect $150,000-$250,000 in total costs. Most can be financed into the loan.
Why Michigan Businesses Choose LVRG for USDA Loans
We Specialize in Large, Complex Rural Business Financing
Most SBA brokers focus on smaller 7(a) loans under $1M. We specialize in the complex, capital-intensive projects where USDA B&I loans make sense: $2M to $25M financing, food processing and manufacturing operations, healthcare facilities and medical projects, large real estate and construction projects, equipment-intensive businesses, and rural job creation projects.
Our USDA Experience: Over 20 years facilitating business financing, we've worked on USDA loans from $2M to $18M across food processing, manufacturing, healthcare, construction, and infrastructure projects throughout rural Michigan and nationwide.
Access to USDA-Approved Lenders You Can't Reach Alone
Not every bank does USDA B&I loans. It's a specialized program requiring specific USDA approval, expertise, and appetite for larger rural projects. We maintain relationships with 25+ lenders including national banks with USDA lending programs, regional banks focused on rural business lending, Farm Credit institutions with USDA expertise, and community banks in rural Michigan markets.
Many of these lenders don't accept direct applications for USDA loans—they only work with experienced brokers who can properly underwrite and package complex rural business projects.
Expert Packaging for Maximum Approval Odds
USDA business loans require more extensive documentation and analysis than standard commercial loans. We prepare comprehensive packages including detailed business plans and project narratives, sophisticated cash flow projections and financial analysis, job creation and economic impact documentation, industry and market analysis, and management capability assessment.
We've structured USDA deals for businesses that regional banks said were "too complex" or "outside our expertise."
We Navigate USDA's Bureaucracy So You Don't Have To
USDA is a federal agency with specific regulations, required documentation, approval processes, and compliance requirements. The process is more complex than SBA loans. We handle all USDA coordination and compliance, manage the approval timeline and requirements, satisfy conditions and documentation requests, and keep your project moving toward closing.
You focus on your business. We handle the financing complexity.
Zero Cost to Your Business
You pay us nothing. We're compensated by lenders through standard broker fees built into USDA business loans. You get expert guidance, professional packaging, access to specialized lenders, and white-glove service at zero cost.
Michigan Banks Refer USDA Deals to Us
When Michigan banks have clients who need USDA financing but lack the expertise or USDA lending capacity themselves, they refer to us. Community banks, credit unions, and commercial loan officers trust us with their clients because we deliver results professionally and ethically.
Common USDA Business Loan Questions
What credit score do I need for a USDA business loan?
Minimum 650 personal credit score for owners with 20%+ equity. Preferred is 680+. Some lenders will consider 620-650 with strong compensating factors including excellent business cash flow (DSCR 1.5x+), substantial collateral, significant equity injection (25%+), experienced management team, and strong industry position.
USDA focuses heavily on business cash flow and job creation. A 670 credit score with strong business performance is often better than a 750 score with marginal cash flow.
How long does it take to get a USDA business loan approved?
Typical timeline is 60-90 days from complete application to funding. Breakdown: Weeks 1-2 for document collection and package preparation, Weeks 3-6 for lender underwriting, Weeks 7-9 for USDA review and approval, and Weeks 10-12 for closing preparation and funding.
Complex projects may take longer. Simple projects with strong financials can close in 50-60 days. Going direct to banks without professional packaging typically adds 30-45 days due to incomplete documentation and back-and-forth revisions.
Can I use USDA loans to buy an existing business?
Yes. USDA B&I loans can finance business acquisitions including purchase price (business assets, goodwill, inventory), real estate if included in acquisition, equipment and machinery, and working capital for post-acquisition operations.
Requirements: Business must be located in USDA-eligible rural area, business must have operating history (typically 2+ years), acquisition must create or retain jobs in rural area, and you must demonstrate management capability to run the business.
We've facilitated USDA-financed acquisitions for food processing operations, manufacturing companies, healthcare facilities, and other rural enterprises from $2M to $12M.
Can startups get USDA business loans?
Possible but challenging. USDA strongly prefers existing businesses with operating history. Startup considerations: You'll need comprehensive business plan with detailed financial projections, experienced management team with industry expertise, significant equity investment (20%+), and strong demonstration of job creation in rural area.
Food processing startups with experienced operators and contracts with local farmers have better odds. Manufacturing startups with proven management teams may qualify. Pure startup service businesses rarely qualify.
Better strategy: Start with SBA 7(a) loan for initial business establishment, then use USDA for expansion once you have 2-3 years of operating history and proven concept.
What if my business is near a major city? Can I still qualify?
Possibly. USDA eligibility is determined by specific address, not just proximity to cities. Many suburban areas around Detroit, Grand Rapids, Ann Arbor, and Lansing ARE eligible because they're outside the urbanized boundary.
For example, parts of Oakland County, Macomb County, Kent County, and Washtenaw County qualify even though they're in major metro areas.
We verify your specific address in 5 minutes. Call (855) 998-5874 with your business address.
Can I use USDA loans for working capital only?
USDA prefers projects with fixed asset component (real estate or equipment). Pure working capital loans are difficult. However, working capital can be included as part of a larger project financing real estate, equipment, or business acquisition plus working capital for operations.
If you only need working capital, SBA 7(a) loans are better structured for this purpose.
How much can I borrow with a USDA business loan?
Standard USDA B&I loans go up to $25,000,000. Some projects can exceed $25M with special approval (typically $25M-$40M range for very large economic development projects).
Loan amount is limited by business cash flow (debt service coverage), collateral value, and owner equity injection. You typically need DSCR of 1.25x or higher to support requested loan amount.
What industries don't qualify for USDA business loans?
Exclusions: Agricultural production (use USDA Farm Service Agency loans instead), lending or investment businesses, gambling or gaming operations, golf courses and country clubs, businesses deriving income from activities of a sexual nature, and speculative real estate development.
Churches and religious organizations generally don't qualify unless operating a clearly defined business (e.g., religious bookstore, retreat center).
Almost all other industries qualify including food processing, manufacturing, healthcare, construction, professional services, retail, hospitality, and more.
Can I refinance existing debt with a USDA loan?
Yes, but with conditions. USDA allows debt refinancing when refinancing improves cash flow allowing for business expansion, refinancing is part of larger project involving business growth or job creation, and refinancing is not the primary purpose (must be expansion component).
Pure refinancing without expansion component typically doesn't qualify. Better structure: Refinance existing debt plus finance expansion, new equipment, or facility improvements.
What's the difference between USDA B&I loans and USDA Farm loans?
USDA B&I (Business & Industry) loans are for non-farm businesses located in rural areas including food processing, manufacturing, healthcare, retail, services, and other commercial operations. These are the loans covered in this guide.
USDA Farm Service Agency loans are for agricultural production including crop farming, livestock operations, dairy farming, and direct agricultural activities.
If you're a farmer or rancher, you need USDA FSA loans. If you're a business operating in a rural area (even if agriculture-related like food processing), you need USDA B&I loans.
Do I need to create jobs to qualify for USDA loans?
Not required but strongly preferred. USDA prioritizes projects that create or save jobs in rural areas. Job creation improves your approval odds, may result in better loan terms, and demonstrates positive economic impact.
If your project doesn't create jobs, you can still qualify based on other factors including business strength and cash flow, collateral adequacy, and community benefit.
Projects creating 20+ jobs get high priority. Projects retaining existing jobs (acquisition preventing business closure) also receive favorable consideration.
Ready to Apply for a USDA Business Loan in Michigan?
If you need $2M to $25M for your rural Michigan food processing, manufacturing, or healthcare business, USDA B&I loans offer loan amounts that exceed SBA limits, longer terms up to 30 years, competitive rates, and financing structured for job creation and rural economic development.
Stop wasting time with banks that don't understand USDA lending or can't handle projects of your size and complexity.
Three Ways to Get Started
Call Our USDA Loan Specialists: (855) 998-5874. Speak directly with a USDA business loan expert who understands rural Michigan businesses and complex project financing. We'll verify your address eligibility and provide preliminary qualification assessment. Available Monday-Friday, 9am-6pm EST.
Email Your Project Details: info@lvrgllc.com. Tell us about your business, your project, loan amount needed, and business location. We'll verify USDA eligibility and respond within 24 hours with preliminary assessment and next steps.
Schedule a Consultation: Pick a time that works for your schedule. We'll discuss your project, review USDA qualification factors, and map out your path to approval and funding.
About LVRG Business Funding
LVRG Business Funding is Michigan's leading SBA and USDA loan platform, connecting Michigan businesses with specialized lenders for projects from $250K to $25M+. Based in Metro Detroit, we serve businesses throughout Michigan—from urban markets to rural communities across the state.
Over 20 years, we've facilitated $1+ billion in business financing for more than 10,000 companies nationwide, with deep expertise in large-scale rural business financing, food processing and manufacturing projects, healthcare facilities and medical operations, complex business acquisitions, and multi-million dollar expansions.
We understand rural Michigan's economic landscape, USDA's priorities and requirements (especially for food processing, manufacturing, and healthcare), complex project structuring and underwriting, and what it takes to get large rural business projects approved and funded.
LVRG Business Funding Michigan's USDA & SBA Loan Specialists (855) 998-5874 info@lvrgllc.com Based in Metro Detroit | Serving All of Michigan Loan Programs: USDA B&I Loans | SBA 7(a) Loans | SBA 504 Loans