USDA Rural Development

Our expertise

The USDA Rural Development Finance team is made up of five investment bankers with more than 60 years of combined experience. We’ve partnered with over 1,000 USDA borrowers on more than $4 billion in financings. In broad terms, we focus on four key USDA programs.

Water and Environmental Program (WEP)

The WEP assists rural communities with populations of 10,000 or less with the construction of drinking water, sanitary sewer, solid waste and storm drainage facilities by providing direct loans, grants and loan guarantees. Those who qualify for the program include public bodies, nonprofit organizations and recognized Indian tribes.

Since 1995, our team has been providing interim financing at extremely low costs to WEP borrowers through the issuance of tax-exempt bond anticipation notes. These notes can be issued through statewide pooled loan programs and loaned to borrowers throughout the respective state or issued on a standalone basis. By generating economies of scale and efficiently structuring and pricing, our team has made it possible for some WEP borrowers to effectively pay zero percent financing under certain market conditions.

Our numbers
  • 1,008 WEP projects funded
  • $2.9 billion in total financing

Recent projects


Community Facilities Direct Loan Program

Through the CF Direct Loan Program, the USDA provides long-term, fixed rate loans and grants to assist with the development of essential facilities in rural communities. This program specifically benefits municipal and nonprofit borrowers in communities with populations of 20,000 or less.

Our team provides interim financing, through the underwriting of tax-exempt bond anticipation notes, to borrowers who have a commitment for CF Direct Loan funding. We work with borrowers to structure transactions, present financing to rating agencies, market the notes, and close the note issues to provide funds for construction. At each step, we strive to manage the process effectively and efficiently in order to achieve the lowest financing rates for borrowers – in some cases, as low as 0.28%.

Our numbers
  • 46 CF Direct Loan projects funded
  • $740 million in total financing

Recent projects


Community Facilities Guaranteed Loan Program

Designed to benefit municipal and nonprofit borrowers in rural communities of 20,000 residents or less, the CF Guaranteed Loan Program allows for financing with the USDA guaranteeing 90% of the total debt issuance.

Our team works with CF Guaranteed Loan borrowers to secure a lender of record, structure and market a debt issuance, and ultimately close the issuance to provide construction or refinancing funds. We know the investor market well and have spent years educating potential debt purchasers about the USDA and the features of its programs. One of the primary benefits our team can offer borrowers is the ability to sell the guaranteed portion of the debt at long-term fixed rates in order to minimize interest rate risk.

Our numbers
  • 21 CF Guaranteed loan projects funded
  • $281 million in total financing

Recent projects


Business and Industry Guaranteed Loan Program

The B&I Guaranteed Loan Program makes it possible for rural communities of 50,000 residents or less to secure loans of up to $25 million. Depending on the size of the project and the qualifying borrower, the program guarantees 60% to 90% of the debt issued, protecting originating lenders against credit risk.

Our team works with B&I Guaranteed Loan borrowers to secure a lender of record, structure and market a debt issuance, and ultimately close the issuance to provide construction or refinancing funds. We know the investor market well and have spent years educating potential debt purchasers about the USDA and the features of its programs. One of the primary benefits our team can offer borrowers is the ability to sell the guaranteed portion of the debt at long-term fixed rates in order to minimize interest rate risk.

Past performance is not indicative of future results.


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