Mortgage Bankers Association

USDA's Business & Industry (B & I) lending program is designed to improve business, industry, labor and global economic and environmental climate in rural areas. In an attempt to alleviate the credit crisis on "Main Street", the American recovery and Reinvestment Act (ARRA) aims to strengthen the already existing B & I programs to encourage providers to participate.

Arra allows several improvements to the B & I program is available until 30 September 2010:

• 1.7 billion U.S. dollarsLoans to businesses, rural New can not be guaranteed. This is a complement to the 2010 budget and the amount corresponding to approximately twice that of last year, B & I activities.
• B & I funding pledge is approved as required by a central pool at the national office to avoid a potentially faulty state allocations of funds.
• B & I guarantee fee of 2% reduced to 1%.
• The annual renewal fee of ¼% is eliminated.
• Ensure 90% is available on a loan of priorityfor 10 million U.S. dollars

"Loans high priority," who are entitled to a guarantee of 90%, scoring at least 55
points below the B & I in scoring. In general, a loan is considered a priority "high" if you have "good job" and is in a community "in distress":

• A company that offers the quality of work "if it meets any of the following criteria:
O pays an average wage exceeding 125% of federal minimum wage of $ 9.07 per hour.
or work inFlat Tax Credit Program
or promote the package of health benefits to all employees with at least 50% of the premium paid by employer
• A company is considered to be in a community "in distress", the area experienced one or more of the following elements:
O emigration: the loss of population every ten years in the last 40 years
O persistent poverty: the poverty rate is 20% or more in the last 30 years
high unemployment or: more than 125% above the national unemployment rate
O LFAor under-represented: an area that is not historically benefited or women-owned business of B & I assistance or a minority

If a company is not in crisis-affected communities and / or provide quality work, the project may still be eligible for B & I funding pledge under a guarantee of 90%.

Along with the benefits to B & I pledge additional funds bring requirements:

• Buy American: Projects for the construction, alteration, maintenance or repair of a public building orPublic works must use the American Iron, steel and manufactured
• vehicles: All vehicles must be financed in the United States are produced
• Davis Bacon Act: For loans over $ 2000 goes to construction, alterations or repairs, workers and mechanics are used to pay current salaries, in accordance with the Davis Bacon Act
• Projects not eligible:
O Zoo
O Aquariums
Or supermarket (unless the creation of jobs and quality of E85 fuel sold for completion)
OrPools
• Water parks
O Hotel / Motel with swimming pools / water parks
W Golf
O Museums
casinos and gambling or other companies

In addition to these limitations, the program works, like the original B & I Guaranteed
Loan Program. In addition, a project that is consistent with B & I standards, but not ARRA additional requirements, may continue as a regular B & I loans from state-level approval.