USDA Business & Industry Loan Guarantee: Compliance Requirements

If borrower defaults, lender must submit Form RD 1980-44 'Guaranteed Loan Borrower Default Status' monthly until loan is no longer in default; lender must meet with USDA if monetary default exceeds 60 days.

Deadline: monthly during default period

Source: Form RD 1980-44 and USDA B&I Program FAQs

Borrower must submit annual financial statements to the lender, which the lender must submit to USDA within 120 days of the borrower's fiscal year end, accompanied by lender's written financial analysis and summary.

Deadline: within 120 days of borrower's fiscal year end

Source: 7 CFR 5001 and OCC Guidance June 2025

Lender must report outstanding principal and interest balance on each guaranteed loan to USDA semi-annually.

Deadline: semi-annually on dates established by Agency

Source: USDA B&I Servicing Requirements

Lender must provide annual report to USDA of the number of jobs employed by the borrower.

Deadline: annually as requested by USDA

Source: USDA B&I Program Requirements

Borrower must pay annual guarantee renewal fee of 0.55% of outstanding guaranteed principal balance as of December 31, due by January 31; fee becomes delinquent after April 1 and may result in guarantee cancellation.

Deadline: due January 31, delinquent after April 1

Source: 7 CFR 5001 and USDA official program page

Borrower must maintain loan covenants specified in loan agreement, including restrictions on dividend payments, officer compensation, capital expenditures, and assumptions of other liabilities.

Deadline: continuous compliance per loan agreement

Source: 7 CFR 4279.161(b)(11) and loan agreement requirements

If liquidation becomes necessary, lender must obtain USDA written approval of liquidation plan within 30 days after decision to liquidate before commencing liquidation proceedings.

Deadline: within 30 days of liquidation decision

Source: 7 CFR 5001.517

Borrower and lender must maintain loan records, including all origination and servicing documentation, for the life of the guaranteed loan and any period required for audit or litigation purposes.

Deadline: for life of loan and any audit/litigation period

Source: 7 CFR 5001 and OMB Control Number 0570-0069

For energy projects producing renewable biomass or biofuel, borrower must complete two operating cycles at design performance levels prior to issuance of Loan Note Guarantee or demonstrate project meets acceptance test criteria.

Deadline: prior to issuance of Loan Note Guarantee

Source: 7 CFR 4279 Subpart B and 7 CFR 5001