Landmark Bancorp Inc.

06/13/2025 | Press release | Distributed by Public on 06/13/2025 08:52

How Local Farmers & Rural Business Owners Benefit from USDA Loans

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For many farmers and rural entrepreneurs, securing the right funding is a crucial step in building, sustaining, or expanding their businesses. Whether it's upgrading equipment, hiring staff, or launching a new service, financial support can make all the difference. But not all loans are created equal-learn the different loan types available to you and make the best decision for your goals.

What Is a USDA Loan?

USDA business loans-backed by the United States Department of Agriculture-are designed specifically to support economic development in rural communities. Unlike traditional business loans, USDA loans offer unique advantages: longer repayment terms, competitive interest rates, and access to larger funding amounts. They are especially useful for business owners looking to expand operations, create jobs, or bring essential services to underserved areas.

USDA vs. SBA vs. Traditional Loans

Understanding your lending options is key to choosing the right fit for your goals. While USDA loans are focused on rural development, SBA (Small Business Administration) loans are more broadly used across all types of businesses and geographies. Small business loans are commonly leveraged for working capital, real estate, or business acquisitions and can be a great option for many small businesses.

Traditional business loans, on the other hand, are offered directly by banks and aren't backed by a government agency. While they often have faster approvals, they can come with stricter requirements and fewer borrower protections. This is where USDA and SBA loans are a great option-providing more flexibility and support to borrowers who might not meet the rigid standards of conventional lending.

Who Should Consider a USDA Loan? [Link]

An ideal USDA loan candidate is a business owner and/or farmer operating in a rural area-typically defined as a community with a population under 50,000-who can demonstrate the potential for job creation or economic contribution. These loans are a great fit for businesses like:

  • Manufacturerslooking to expand production
  • Healthcare providersopening or upgrading rural facilities
  • Essential serviceslike grocery stores, pharmacies, and hospitality businesses

If you're unsure whether your area or business qualifies, a financial advisor or your local community bank-like Landmark-can help evaluate your eligibility.

What You Need to Apply

Preparation is a key part of securing funding, no matter which type of loan you pursue. Here's what small business owners should have ready when they meet their banker:

  • Three years of personal and business tax returns
  • A current personal financial statement
  • Year-to-date financials, including a profit & loss statement and balance sheet
  • A clear business plan or project summary

Having these documents organized helps speed up the process and improves your chances of approval.

Common Misconceptions

Many small business owners hesitate to apply for USDA or small business loans because they assume the process is too long or too complicated. In reality, with the right guidance, these government-backed loans can be both accessible and highly beneficial. They often offer more favorable terms than traditional options-especially when conventional financing isn't available.

What the Loan Process Looks Like

At Landmark, we go beyond the typical transaction, sitting down and listening to your needs, goals and understanding your business. Next, we guide you through your loan options, helping you select the solution best for you. We'll help you collect financials, understand paperwork, present your request to our internal lending team or apply for a USDA loan. Whether it's answering questions, adjusting terms, or planning for future needs, we're with you every step of the way.

Use a Financial Calculator to Estimate Loan Payments [Link]

See what your monthly payments might look like. Use a financial calculatorto estimate loan costs, interest, and terms. Understanding the numbers up front can help you make smarter, more confident decisions.

Landmark is more than a lender

At Landmark Bank, we believe that while finances can be complex, banking shouldn't be. Whether it's online, over the phone, or in person, we're there when and where you need us-with real conversations and real solutions. We organize our business around the way youdo business, and we start by listening.

From celebratory business wins to navigating tough times, our team of dedicated bankers is by your side through every milestone. We don't just offer capital-we offer commitment. You'll talk to someone who knows your name, understands your goals, and responds quickly when you reach out.

Growth takes time. That's why we invest in long-term relationships, offering one-on-one support and custom loan solutions that grow with you. Because at Landmark, banking is about more than balance sheets-it's about people. And when you succeed, so do we.

Ready to explore USDA or small business loans? Contact Landmark Bank today to speak with a lending specialist.

Landmark Bancorp Inc. published this content on June 13, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 13, 2025 at 14:52 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at support@pubt.io