USDA Commerical Loan Program? from Christopher Shearer

Real Estate Broker/Owner VA #0225205135


 The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits. It is not intended that the guarantee authority will be used for marginal or substandard loans or for relief of lenders having such loans. 

How does the B&I Guaranteed Loan Program compare to the Rural Energy for America Program Guaranteed Loan and Grant?
To assist you in determining which program best fit your needs this comparison chart identifies the programs common and distinct requirements in an easy to read format.

Who May Borrow?
A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual. A borrower must be engaged in or proposing to engage in a business that will:

  1. Provide employment;
  2. Improve the economic or environmental climate;
  3. Promote the conservation, development, and use of water for aquaculture; or
  4. Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems.

Individual borrowers must be citizens of the United States (U.S.) or reside in the U.S. after being legally admitted for permanent residence. Corporations or other nonpublic body organization-type borrowers must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. B&I loans are normally available in rural areas, which include all areas other than cities or towns of more than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns.

How May Funds be Used?
Loan purposes must be consistent with the general purpose contained in the regulation. They include but are not limited to the following:

  1. Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities.
  2. Business conversion, enlargement, repair, modernization, or development.
  3. Purchase and development of land, easements, rights-of-way, buildings, or facilities.
  4. Purchase of equipment, leasehold improvements, machinery, supplies, or inventory.

What is the percentage of Guarantee?
The percentage of guarantee, up to the maximum allowed, is a matter of negotiation between the lender and the Agency. The maximum percentage of guarantee is 80 percent for loans of $5 million or less, 70 percent for loans between $5 and $10 million, and 60 percent for loans exceeding $10 million.

What are the Loan Amounts?
The total amount of Agency loans to one borrower must not exceed $10 million. The Administrator may, at the Administrator's discretion, grant an exception to the $10 million limit for loans of $25 million under certain circumstances. The Secretary may approve guaranteed loans in excess of $25 million, up to $40 million, for rural cooperative organizations that process value-added agricultural commodities.

What are the Loan Terms?
The maximum repayment for loans on real estate will not exceed 30 years; machinery and equipment repayment will not exceed the useful life of the machinery and equipment purchased with loan funds or 15 years, whichever is less; and working capital repayment will not exceed 7 years.

What are the Interest Rates?
The interest rate for the guaranteed loan will be negotiated between the lender and the applicant and may be either fixed or variable as long as it is a legal rate. Interest rates are subject to Agency review and approval. The variable interest rate may be adjusted at different intervals during the term of the loan, but the adjustments may not be more often than quarterly.

Is Collateral Required?
Yes. Collateral must have documented value sufficient to protect the interest of the lender and the Agency. The discounted collateral value will normally be at least equal to the loan amount. Lenders will discount collateral consistent with sound loan-to-value policy.

Annual Renewal Fee?
The annual renewal fee is paid once a year and is required to maintain the enforceability of the guarantee as to the lender.

The rate of the annual renewal fee (a specified percentage) is established by Rural Development in an annual notice published in the Federal Register, multiplied by the outstanding principal loan balance as of December 31 of each year, multiplied by the percent of guarantee. The rate is the rate in effect at the time the loan is obligated, and will remain in effect for the life of the loan.

Annual renewal fees are due on January 31. Payments not received by April 1 are considered delinquent and, at the Agency's discretion, may result in cancellation of the guarantee to the lender. Holders' rights will continue in effect as specified in the Loan Note Guarantee and Assignment Guarantee Agreement. Any delinquent annual renewal fees will bear interest at the note rate and will be deducted from any loss payment due the lender. For loans where the Loan Note Guarantee is issued between October 1 and December 31, the first annual renewal fee payment will be due January 31 of the second year following the date the Loan Note Guarantee was issued.

Where Should Applications be Filed?
Complete applications should be sent to the USDA Rural Development State Office for the project location. A list of offices and additional information can be obtained at


Christopher Shearer knows what it takes to be a successful lender. Since the start of our operation, our dedication to exceed your expectations and guarantee your satisfaction has made us what we are today. From start to finish in the loan process, we provide no less than exceptional service to our most prized possessions - our customers.


Competition is Fierce


We understand the loan business to be a fiercely competitive market. But we also believe that there is more to home financing than simply securing the lowest interest rate. That's why we ask a lot of questions and take the time to listen to your answers concerning your overall financial picture. We want to offer you the best option to achieve your financial goals, whether it's buying your first home, consolidating debt, or preparing for retirement.


Your Trusted Advisor


Funding your loan is just the beginning of our relationship with you. We want you as a lifetime customer, not just a one-time deal. We will continue to monitor interest rates and let you know when opportunities arise to improve your current situation. We will also stay in touch and continue to educate you so that we can be your ultimate resource for mortgage financing information-your Trusted Advisor-today, tomorrow, and beyond!


A Loan Made Just for You


Because mortgage loans are uniquely individual, we offer a wide range of residential loan programs tailored to your specific needs, including:


•·  Adjustable Rate Mortgages

•·  Fixed Rate Mortgages

•·  First Time Home Buyer

•·  Debt Consolidation

•·  Non-owner Loans

•·  Construction & Home Improvement

•·  Bad or No Credit


Home Sweet Home


We believe everyone deserves to own their home. We can help you get there. Choosing the right lender is a key element to managing your mortgage. As  a mortgage professional, our goal is not only to provide you with a loan, but also to help you select the one most beneficial to you and your long-term goals. After that, we will help you manage that debt over time. Few lenders provide this type of ongoing, personalized service.




We will help you save hundreds of dollars a
month and increase
your tax deductions
so you can be debt-free.





Kiss Your Debt Goodbye


One of the greatest services we are privileged to offer our clients is debt consolidation. Why spend a significant portion of your monthly income on high interest loans that are not tax deductible? We will help you save hundreds of dollars a month and increase your tax deductions so that you can be debt-free and live the lifestyle you desire.


Listening To Our Customers Has Made Us Successful


As a leader in the mortgage industry, we aim to deliver excellence in every area. Based on client feedback, we constantly strive to improve our systems and technology to improve our efficiency and success ratio. Because market conditions are constantly in flux, we keep our fingers on the pulse of mortgage backed securities to ensure that you get the best interest rate possible.




We have offices nationwide and cover all South Florida cities such as: * Aventura * Belle Glade * Boca Del Mar * Boca Raton * Boynton Beach * Brownsville * Coconut Creek * Cooper City * Coral Gables * Coral Terrace * Country Club * Country Walk * Cutler Bay * Dania Beach * Davie * Deerfield Beach * Delray Beach * Doral * Fountainbleau * Glenvar Heights * Greenacres * Hallandale Beach * Hamptons at Boca Raton * Hialeah Gardens * Homestead * Ives Estates * Jupiter * Kendale Lakes * Kendall West * Kendall * Key Biscayne * Kings Point * Lake Worth Corridor * Lake Worth * Lauderdale Lakes * Lauderhill * Leisure City * Lighthouse Point * Margate * Miami Beach * Miami Lakes * Miami Shores * Miami Springs * Miramar * North Lauderdale * North Miami Beach * North Miami * North Palm Beach * Oakland Park * Ojus * Olympia Heights * Opa-Locka * Palm Beach Gardens * Palm Beach * Palm Springs * Palmetto Bay * Palmetto Estates * Parkland * Pinecrest * Pinewood * Plantation * Princeton * Richmond West * Riviera Beach * Royal Palm Beach * Sandalfoot Cove * South Miami Heights * South Miami * Sunny Isles Beach * Sunrise * Sunset * Sweetwater * Tamarac * Tamiami * The Crossings * The Hammocks * Wellington * West Little River * West Park * Westchester * Weston * Westwood Lakes * Wilton Manors * Atlantis * Bal Harbour * Bay Harbor Islands * Belle Glade Camp * Biscayne Park * Boca Pointe * Boulevard Gardens * Briny Breezes * Broadview Park * Canal Point * Century Village * Cypress Lake * Dunes Road * El Portal * Fisher Island * Florida City * Franklin Park * Fremd Village-Padgett Island * Gladeview * Glen Ridge * Godfrey Road * Golden Beach * Golden Lakes * Golf * Goulds * Gulf Stream * Gun Club Estates * Haverhill * High Point * Highland Beach * Hillsboro Beach * Hillsboro Pines * Hillsboro Ranches * Homestead Base * Hypoluxo * Indian Creek * Islandia * Juno Beach * Juno Ridge * Jupiter Inlet Colony * Lake Belvedere Estates * Lake Clarke Shores * Lake Harbor * Lake Park * Lakes by the Bay * Lakeside Green * Lantana * Lauderdale-by-the-Sea * Lazy Lake * Limestone Creek * Manalapan * Mangonia Park * Medley * Mission Bay * Naranja * North Bay Village * Ocean Ridge * Pahokee * Palm Beach Shores * Palm Springs North * Pembroke Park * Plantation Mobile Home Park * Pompano Estates * Richmond Heights * Roosevelt Gardens * Royal Palm Estates * Schall Circle * Sea Ranch Lakes * Seminole Manor * South Bay * South Palm Beach * Southwest Ranches * Stacey Street * Sunshine Acres * Surfside * Tequesta * Three Lakes * University Park * Villages of Oriole * Virginia Gardens * Washington Park * West Miami * West Perrine * Westview * Whisper Walk

As well as the Colorado communities of Aspen  * Vail  *  Glenwood Springs * Boulder * Grand Junction * Steamboat Springs

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Christopher Shearer is a multi-family / commercial real estate consultant achieving property owners the highest possible NOI through the implementation of optimal rents for the property, accomplished through careful market, property, comparison grid analysis, effective cost control and revenue improvement programs; identify and analyze trends and recommending appropriate strategies to increase a properties maximum efficiency. Expert at Preparing new investment analysis presentations, offering memoranda and marketing materials, including key investment metrics. IRR, COC, DCR, CR etc.

A seasoned professional, with over 15 years' experience in real estate and finance management. A real estate broker licensed in Florida and Virginia specializing in real estate and asset management of multi-family and commercial properties. Christopher is currently pursuing his M.B.A. in real estate, he holds a B.A. in business as well as an A.A. in business management. Christopher has the following state licenses; Virginia Real Estate Broker, Florida Real Estate Broker, Florida Mortgage Broker and Colorado Mortgage Broker.

Contact me for a consultation and analysis of your commercial or multi-family properties.


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