USDA Determines $300 Million in Additional Funding to the B&I Loan Program

The combination of the new OneRD rule and the COVID 19 Pandemic has accelerated the demand for USDA B&I loans. The original Congressional Appropriation was $1 Billion in new loan authority and an additional $1 Billion in CARES Act loans. In addition, there was approximately $400 Million in carryover money from previous fiscal years.

The National Rural Lenders’ Roundtable (NRLR) discovered early on that there would be excess demand for USDA’s B&I Guaranteed Loan Program.  Quite simply, it would run out of money.  Our preferred course of action would have been for the USDA to ask for a reprogramming of funds. However, USDA staff determined that there were at least $300 Million in obligated funds that could be made available because some transactions never closed. The extra $300 Million will keep the program running and avoid delays.  Later this year, USDA plans to do another “sweep” to find extra funds that were obligated but never closed.

NRLR’s goal is adequate funding that avoids the use of the priority point scoring system that delays approval.

We will aggressively seek at least $2 Billion in loan authority in the FY22 budget. In addition, President Biden will propose $15 Billion in loan authority over ten years for the 9003 Program and B&I Program.

On Monday, April 26, 2021 there was a “get acquainted” session with USDA’s new Rural Business Services Administrator, Dr. Karama Neal. She is very familiar with the problems faced by both lenders and borrowers and lent a sympathetic ear to NRLR.