USDA Rural Development

Our expertise

The USDA Rural Development Finance team is made up of four investment bankers with more than 75 years of combined experience. We’ve partnered with over 1,300 USDA borrowers on more than $8 billion in financings. In broad terms, we focus on four key USDA programs.

Water and Environmental Program (WEP)

The WEP assists rural communities with populations of 10,000 or less with the construction of drinking water, sanitary sewer, solid waste and storm drainage facilities by providing direct loans, grants and loan guarantees. Those who qualify for the program include public bodies, nonprofit organizations and recognized Indian tribes.

Since 1995, our team has been providing interim financing at extremely low costs to WEP borrowers through the issuance of tax-exempt bond anticipation notes. These notes can be issued through statewide pooled loan programs and loaned to borrowers throughout the respective state or issued on a standalone basis. By generating economies of scale and efficiently structuring and pricing, our team has made it possible for WEP borrowers to secure the lowest cost financing available in the marketplace.

Our numbers

• 1,186 WEP projects funded
• $3.7 billion in total financing

Community Facilities Direct Loan Program

Through the CF Direct Loan Program, the USDA provides long-term, fixed rate loans and grants to assist with the development of essential facilities in rural communities. This program specifically benefits municipal and nonprofit borrowers in communities with populations of 20,000 or less.

Our team provides interim financing, through the underwriting of tax-exempt bond anticipation notes, to borrowers who have a commitment for CF Direct Loan funding. We work with borrowers to structure transactions, present financing to rating agencies, market the notes, and close the note issues to provide funds for construction. Our team also directs the USDA application process and manages the required USDA forms and time drivers such as feasibility study, environmental report/assessment, preliminary architectural report, alternative construction delivery method, etc. Through each step, our team strives to manage the process effectively and efficiently in order to achieve a successful USDA obligation and the lowest financing rates for borrowers.

Our numbers

• 131 CF Direct Loan projects funded
• $3.6 billion in total financing

Community Facilities Guaranteed Loan Program

Designed to benefit municipal and nonprofit borrowers in rural communities of 50,000 residents or less, the CF Guaranteed Loan Program allows for financing with the USDA guaranteeing 80% of the total debt issuance.

Our team works with CF Guaranteed Loan borrowers to secure a lender of record, structure and market a debt issuance, and ultimately close the issuance to provide construction or refinancing funds. We know the investor market well and have spent years educating potential debt purchasers about the USDA and the features of its programs. One of the primary benefits our team can offer borrowers is the ability to sell the guaranteed portion of the debt at long-term fixed rates in order to minimize interest rate risk.

Our numbers

• 46 CF Guaranteed Loan projects funded
• $501 million in total financing

Business and Industry Guaranteed Loan Program

The B&I Guaranteed Loan Program makes it possible for rural communities of 50,000 residents or less to secure government guaranteed loans. The program typically guarantees 80% of the debt issued, protecting originating lenders against credit risk.

Our team works with B&I Guaranteed Loan borrowers to secure a lender of record, structure and market a debt issuance, and ultimately close the issuance to provide construction or refinancing funds. We know the investor market well and have spent years educating potential debt purchasers about the USDA and the features of its programs. One of the primary benefits our team can offer borrowers is the ability to sell the guaranteed portion of the debt at long-term fixed rates in order to minimize interest rate risk.

Past performance is not indicative of future results.