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Businesses in rural areas can take advantage of government-backed financing.

Key Features

  • Government-Backed Financing
  • Competitive Rates
  • Fast Processing
  • Local Partnership
  • Government assisted financing for businesses in rural areas
  • Up to $25 million loan amounts available
  • Competitive rates for a wide range of business needs:
    • Expansion
    • Land purchase
    • Equipment
    • Debt refinancing
    • And more
  • Local decision-making and processing here in Tahlequah
  • Attentive, friendly service from start to finish

First State Bank’s Lending Area for its SBA products includes Cherokee County and most of Northeast Oklahoma, as long as the collateral is located in a USDA B&I eligible area.

The USDA Business & Industry program finances commercial loans of many types, specifically in rural areas, and features the following:

Who Qualifies

  • For-profit businesses
  • Nonprofits and cooperatives
  • Public bodies
  • Individuals

Maximum Loan Amount

Up to $25 million

Benefit to Borrowers

Long-term financing, improved cash flow, fixed maturity, and no balloons. USDA B&I guaranty allows the lender to finance larger projects that it would typically be able to do.

Use of Proceeds

  • Business conversion, enlargement, repair, modernization, or development
  • Purchase and development of land, buildings, facilities, easements, rights-of-way
  • Purchase of equipment, leasehold improvements, machinery, supplies, or inventory
  • Debt refinancing when new jobs will be created or other conditions are met
  • Acquisitions when the loan will save or create jobs

 Maximum Interest Rates

Rates vary by loan amount, nature of the loan, and the circumstances of the borrower. Rates are tied to Wall Street Journal Prime Rate. Typically rates range between Prime +1% and Prime + 2.75% and are usually adjusted quarterly or annually, but longer adjustment periods are available depending on the situation. 


It depends on the ability to repay. Generally, working capital and machinery & equipment (not to exceed life of equipment) is up to 15 years. Real estate is up to 30 years. Working capital is up to 7 years.

Collateral Types

  • Real Estate: 80% of fair market value
  • Equipment: 70% of fair market value
  • Inventory: 60% of book value (raw inventory and finished goods only)
  • Accounts Receivable: 60% of book value (less than 90 days) 

Eligible Area Defined

  • Any area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town.
  • The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area.

Borrower Restrictions

  • Government or military employees may not own more than 20%.
  • Majority ownership must be held by US citizen or permanent resident.

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