Direct Rural Lending Program

Direct Rural Lending Program

Loan Criteria

Thomas USAF’s newest “Direct Rural Lending Program” is aimed at providing funds to “Essential Rural Businesses” and Businesses catering to the “Agricultural Sector.”

Rural Businesses

Our Nationwide program is designed to bring Direct Funding to Rural Businesses and can be coupled with SBA 504 Debentures. USDA’s definition of Rural shall be utilized to determine eligibility. Targeted Rural Businesses must be Essential to Rural Communities.

 Examples of Businesses Essential to Rural Communities:

a)      HealthCare – Hospitals, Doctors Offices, Urgent Care/Medical  Centers or similar businesses

b)      Eldercare – Nursing Homes, Assisted Living, Senior Living or similar businesses

c)      Housing – Multi-Family, Student, Military Housing , Rural Worker or similar businesses

d)      Community Facilities – Schools, Infra structure, Water and Waste, Funeral Homes, Power Generation, Telecommunications or similar businesses

Businesses Catering to or Involved in the Agriculture Sector:

Businesses can be located in either rural or urban areas. Examples of Businesses Involved in or Catering to Agriculture Sector:

a)      Agriculture Production:  Vineyards, Beef Cattle Ranching/Farming, Dairy, Poultry, Timber Tracts, Vegetable/Fruit or similar businesses

b)      Agriculture Manufacturing: Animal Food, Frozen Food Manufacturing, Flour Milling, Soybean Processing or similar businesses

c)       Healthcare, Production and Distribution: Healthcare related  Manufacturing, Fruit/Meat/Seafood and Grocery Wholesalers, Poultry/Meat/SeaFood Processing, Breweries, Wineries, Distilleries, Fertilizers/Chemicals Manufacturing, Animal Healthcare, Consumer Foods, Food Packaging, Companies catering to Exports or similar businesses

d)      Businesses Utlizing Ag Products or catering to Ag Sector: Refrigerated/General Warehousing and Storage, Supermarkets/Grocery Stores, Mini warehouses, Baked Goods

e)      Stores, Fruit/Vegetables Market, Machinery and Equipment Dealers/Manufacturers

 Salient Features of the Program:

Debt Service Coverage:  Loans to Existing Essential Rural Businesses or Businesses Catering to the Agriculture Sector must demonstrate a current global DSC not less than 1.20x

Term:   Loans under the Direct Rural Lending Program could be for a Term up to 20 years depending on the economic life of collateral. The Loan can have a 30 year Amortization with a balloon at the end of the Term i.e. 20 years.

General Rates:  Rates as low as 5% can be structured flexibly—ranging from quarterly adjust to adjusting every 3,5,7,10 or 15 years. Fixed rate options available.

Loan Size:  Preferred Loan Size is $5,000,000- $15,000,000. Minimum Loan Size: $ 2,500,000

Financing:  Direct Rural Lending Program is intended to provide permanent financing to businesses. Interim Funding provided on 504 loans. Construction Loans available on a case by case basis.

Loan to Value:Up to 90% on SBA 504 loans and up to 80% on conventional loans

Exclusions:Rural Businesses generally excluded from this program: Hospitality, Restaurants, Gas stations, Car Washes, Start-ups and Turnarounds, Faith-based projects, Big Box businesses and projects involving Environmental Sensitivity. Borrowers involved in Agriculture may qualify for exceptions

Customer RelationshipsLenders referring loan opportunities can continue to maintain the customer relationships.

Secondary Market Takeout: TUSAF can purchase up to 100% of the loan through table funding at closing.  Call Vasu Srinivasan for details.

Advantages of the Program : Ability to sell obviates need to balance sheet the loan. This minimizes capital set aside requirements arising from the additional volume of business. In addition to liquidity, Lenders can make premium income depending on the rate, whilst retaining client and depositary relationship. Additional  product line offering to customers.

Referrals from Banks, CDC’s, Brokers and Service Providers are welcome

Call to find out if your business can qualify for the Direct Rural Lending Program!

Thomas Kimsey, President of Thomas Financial Group 678-732-1262
Kathy Thomas Morris, Executive Vice President of Thomas Financial Group 678-732-1268
Michael Sammartino, Senior Vice President of Thomas Financial Group 401-225-2888
Kenny Patel, CPA & Vice President of Thomas Financial Group 678-732-1266
Sarah Hall, CPA & Vice President of Thomas Financial Group 678-732-1267
Zach Reed, Jr. Commercial Loan Officer/Analyst Thomas Financial Group 678-732-1263
Vasu Srinivasan,President of Thomas USAF Group 404-365-2030
Mike Thomas, Chairman of TFG and Thomas USAF Group 404-365-2042

Download our Press Releases:

Press Release 1

Press Release 2

Comparison of USDA Program to Other Options

Varied comparisons came from respondents between Thomas USAF’s DRLP, SBA and USDA loans:

  • “USDA loans offer more flexibility than the SBA loans.”
  • “B&I loans utilize more of their lending capital than 504 loans.”
  • “USDA and B&I loans are a good alternative to SBA, especially regarding the size and flexibility of loans.”
  • “USDA is not as user-friendly as SBA.”
  • Turnaround time and extensive paperwork were the most reported difficulties experienced by respondents who have used USDA loans.
  • “SBA seems to have their process down better and can approve instantaneously.”
  • We do business in many states, and find discrepancies in requirements (with USDA).”

More about our new DRLP Here and Download