USDA Rural Development Loan Program

The USDA Rural Development Guaranteed Loan Program was developed to give rural hospitals access to financing terms similar to those enjoyed by large hospitals and health systems. These loans are issues by qualified lenders and guaranteed by the United States Department of Agriculture (USDA).

USDA Loan Benefits

Low up front fees/100% financing

USDA loans have low up front front fees and offer up to 100% financing resulting in low out-of-pocket costs.

Eligibility of Loans

The USDA definition of “rural” is broad, meaning many in small towns and satellites of major cities can meet the requirements.

Relaxed Eligibility

Requirements for eligibility are purposefully lenient with the goal of driving healthcare investment that will revitalize rural communities. Learn more and see if you’re eligible.

Attractive Rates

Because they are guaranteed by the USDA, rural hospitals can access the same lending rates offered to large hospitals and health systems.

Which Facilities Qualify

Eligible applicants include public bodies, non-profits or native tribes. Communities of 20,000 residents or less qualify for Direct Loans, communities between 20,000 and 50,000 qualify for Guaranteed Loans.

Eligible uses for funding include:

Acquire existing real estate

Construct, expand, renovate, or improve facilities

Purchase vehicles and major equipment

Associated project expenses such as legal fees or interest expense


There are two paths for clients interested in refinancing existing debt under USDA

Offset New Project Costs*

Combine Direct & Guaranteed Loans

Average Fixed Rate
Year Amortization
*Eligible if new project amounts > refinanced amount

Improve Cash Flow

Guaranteed Loan only

Average Fixed Rate
Year Fixed Rate
*rate indication as of December 2020 including 0.5% USDA annual fee

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