OneRD Loan Guarantee Initiative

Lender Benefits

We guarantee rural futures.

Often in times of inflation and economic downturn, rural economies are the first to feel loan financing pressures and the last to receive economic relief. Empowered by our advanced digital application system, the OneRD Guarantee Loan Initiative provides an energizer for rural Lenders and economies facing potential economic challenges and uncertainty.

Benefits to Lenders

Approved applications for any of the four OneRD Programs are supported by the full faith and credit of the US Treasury, guaranteeing the debt obligation of up to 80% of loan amounts totaling up to $100M*, reducing risk for rural lending institutions and encouraging cash flow in underserved communities. 

The federal loan guarantee can be used as a liquidity alternative in times of volatility, and guaranteed loans do not count against the legal lending limit of the institution. Additionally, this guaranteed asset contributes to a lucrative secondary market for guarantee sales, providing substantial non-capped fee income to the Lender immediately after closing.

*each OneRD Program has a different loan amount limit, the highest of which being Community Facilities with a $100M limit

Benefits to Borrowers

The OneRD Program provides crucial risk mitigation to Lenders, allowing rural Borrowers the opportunity to not only secure funding for diverse rural projects, but also the ability to negotiate improved borrowing conditions and loan terms.

The OneRD program allows interest rates to be negotiated between the Borrower and the lending institution, which may be fixed or variable, and repricing on variable rate loans is generally based off the Wall Street Journal Prime Plus. Loan terms are available up to 40 years.

Benefits to Rural Communities

The objective of the OneRD Program is to “increase private investment in rural businesses and economic development projects” throughout the country. 

This diverse offering of commercial loan guarantee programs is uniquely situated to work in tandem with Lenders and the US government. These programs support rural economies with a population of 50,000 or less to maintain and create jobs, support economic development, and provide services and infrastructure while mitigating risk for rural lenders and instilling confidence in rural development opportunities.

USDA OneRD

Guarantee Loan Initiative

The United States Department of Agriculture (USDA) Rural Development is dedicated to improving the economic stability and quality of life in rural communities across the United States. Through OneRD, lenders can expand commercial lending while decreasing risk and increasing liquidity.

Visit the OneRD Guarantee website here.

  • This program provides loan guarantees to eligible lenders to develop essential community facilities in rural areas.

    Total Loan Amount: $100M

    Percentage of Loan Guarantee: 80%

  • This program helps private lenders provide affordable financing to qualified borrowers to improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas.

    Total Loan Amount: $50M

    Percentage of Loan Guarantee: 80%

  • This program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.

    Total Loan Amount: $25M

    Percentage of Loan Guarantee: 80%

  • This program offers loan guarantees to lenders for their loans to rural businesses.

    Total Loan Amount: $25M

    Percentage of Loan Guarantee: 80%

Who’s Included

Rural Areas that have a population density of no more than 50,000 people and are not located within or adjacent to an urbanized area (an area with a population of 50,000 or more) or an urban cluster (an area with a population between 2,500 and 50,000).