| The USDA's Business & Industry (B&I) loan | | | | any of the following:o Outmigration: Population loss |
| program is designed to improve business, industry, | | | | each decade for the past 40 yearso Persistent |
| employment and the overall economic and | | | | poverty: 20% poverty rate or more for the past 30 |
| environmental climate in rural communities. In an effort | | | | yearso High unemployment: Greater than 125% of the |
| to ease the credit crunch on "Main Street", the | | | | national unemployment rateo Underserved area or |
| American Recovery and Reinvestment Act (ARRA) | | | | underrepresented group: Area that has historically not |
| aims to boost the existing B&I program to | | | | benefited from B&I assistance or a minority- or |
| encourage lenders to participate. | | | | women-owned business |
| ARRA provides for several B&I program | | | | If a business is not in a distressed community and/or |
| enhancements, which are available through September | | | | does not provide quality jobs, the project may still be |
| 30, 2010:o $1.7 billion of new rural business lending can | | | | eligible for B&I-ARRA funding with less than a |
| be guaranteed. This is in addition to the 2010 budget | | | | 90% guarantee. |
| amount and equal to approximately double the level of | | | | Along with the benefits, B&I-ARRA funding brings |
| past annual B&I activity.o B&I-ARRA funding | | | | additional requirements:o Buy American: Projects for |
| will be approved as requested from a central pool at | | | | the construction, alteration, maintenance or repair of a |
| the National Office to avoid potentially inadequate | | | | public building or public work must use American iron, |
| state allocations of the funds.o The B&I guarantee | | | | steel and manufactured goodso Vehicles: Any vehicles |
| fee is reduced from 2% to 1%.o The annual renewal | | | | financed must be manufactured in the U.S.o Davis |
| fee of ¼% is eliminated.o 90% guarantees are | | | | Bacon Act: For loans in which more than $2,000 will be |
| available on "high priority loans" up to $10 million | | | | spent for construction, alteration or repair, laborers and |
| "High priority loans," which are eligible for a 90% | | | | mechanics must be paid prevailing wages in |
| guarantee, score at least 55points under the B&I | | | | accordance with Davis Bacon Acto Ineligible Projects:o |
| scoring system. Generally speaking, a loan is | | | | Zooso Aquariumso Convenience stores (unless |
| considered "high priority" if it provides "quality jobs" and | | | | creating quality jobs and sells E85 fuel upon |
| is in a "distressed community":o A business provides | | | | completion)o Poolso Water parkso Hotels/motels with |
| "quality jobs" if it meets one of the following criteria:o | | | | pools/water parkso Golf courseso Museumso Casinos |
| Pays an average wage rate that exceeds 125% of | | | | or other gambling establishments |
| the Federal Minimum Wage or at least $9.07 per | | | | Aside from these restrictions, the program works just |
| hour.o Qualifies under the Work Opportunity Tax | | | | like the original B&I guaranteedloan program. |
| Credit Programo Offers healthcare benefits package | | | | Furthermore, any project that complies with B&I |
| to all employees, with at least 50% of the premium | | | | standards but does not meet the additional ARRA |
| paid by the employero A business is considered to be | | | | requirements may still be approved as a regular |
| in a "distressed community" if the area experiences | | | | B&I loan at the state level. |