At Points West Community Bank, we specialize in helping small businesses succeed. Whether you’re launching a new venture, modernizing an existing one, or expanding your reach right here in Colorado, Nebraska, or Wyoming, securing the right financing can often feel like a big hurdle. That’s precisely where government-guaranteed loan programs—especially those offered by the U.S. Department of Agriculture (USDA)—can truly make a difference, acting as a steady hand when you need it most.
Sometimes, a USDA guarantee is just the boost a borrower needs to qualify for the financing they’ve earned. If your business calls a rural area home—which, as we know, covers a good stretch of our market—the USDA offers a powerful suite of loan guarantee programs designed to help you upgrade, expand, or build up your enterprise.
And right now, there’s a rare opportunity you won’t want to miss: the USDA still has over $1 billion in loan guarantee capacity available through its Rural Development programs. But, this funding must be obligated by September 30, 2025. This creates a golden opportunity for rural business owners to act, and rest assured, we’re here to help guide you every step of the way, just like a trusted neighbor.
What Are USDA Guaranteed Loans – and How Do They Work?
USDA loans work similarly to SBA loans: for the programs we’re discussing, the USDA will guarantee up to 80% of the total loan amount. This government backing significantly reduces the risk for the bank, making it easier for small, local businesses like yours to qualify or to secure better terms, such as lower interest rates or longer repayment periods. It’s about stability, ensuring your efforts are built to last.
Here’s how the process typically unfolds with us, as straightforward as a handshake:
- You apply for a loan through Points West Community Bank, just as you would any other commercial loan. We keep it honest and clear.
- Your deal goes through our standard document collection and in-house underwriting process. We’re thorough because we believe in laying things out right the first time.
- If approved by our credit team, we then submit the loan to the USDA for their review.
- The USDA is generally quick, turning around complete applications within 30 days.
- Once approved, your loan moves to closing and funding – that’s when we start seeing real economic momentum building in our rural communities.
This partnership between your local bank and federal programs brings vital capital directly to your business. And because the decision-making stays close to home, we understand your business and your community best.
Why Now? A Unique Funding Window You Can’t Afford to Miss
As of today, the USDA still has over $1 billion available in its national pool of funding across several key programs, including the Business & Industry (B&I) Loan Guarantee, the Timber Production Expansion Program (TPEP), and the Rural Energy for America Program (REAP), among others.
Having this much funding left this far into the fiscal year is unusual. It presents a rare and significant opportunity for rural small businesses—especially those who may have been holding off on capital expenditures, building upgrades, or expansion plans due to uncertainties in interest rates or access to capital. We understand that cautious approach; it’s about good stewardship.
If you’ve been contemplating your next big step—whether it’s expanding a manufacturing line, investing in renewable energy, buying out a retiring partner, or upgrading essential equipment—now very well may be the perfect time to make that move.
Key USDA Programs Worth Exploring
Let’s dive into a few programs that could be a perfect fit for your rural Colorado, Nebraska, or Wyoming business, helping you manage your resources wisely:
Timber Production Expansion Program (TPEP)
Purpose: This program helps establish, reopen, expand, or improve sawmills and other wood processing facilities in rural communities. TPEP is about more than just boosting local economies; it’s designed to support wildfire mitigation and forest health, particularly in designated priority areas. It’s about respecting the land and ensuring its longevity.
Uses Include:
- Facility upgrades or reopening
- Mill modernization
- Equipment purchases
- Working capital for processing operations
Government Fees: None.
Key Benefit: This program directly supports businesses that help manage our forests, strengthen the timber supply chain, and reduce wildfire risks. In mountainous and prairie regions—where both timber and wildfire prevention are absolutely critical—this program offers a powerful win-win for your business and our shared natural heritage.
Business & Industry (B&I) Loan Guarantee
Purpose: The B&I program is all about helping rural businesses grow, modernize, improve local economies, and create jobs by providing better access to capital. It’s about fostering prosperity for everyone, not just one.
As the USDA puts it, this program “improves the economic health of rural communities by increasing access to business capital through loan guarantees. This enables commercial lenders to provide affordable financing for rural businesses.”
Eligible Uses Include:
- Business conversion, enlargement, repair, modernization, or development
- Purchase of land, buildings, or infrastructure for commercial/industrial use
- Equipment purchases
- Inventory and working capital
- Debt refinancing that improves cash flow and creates/saves jobs
- Business acquisitions that maintain operations and preserve jobs
Government Fees:
- 3% Guarantee Fee
- .55% Annual Guarantee Retention Fee (paid by the lender)
- Qualifying projects may receive a reduced fee of 1%
Key Benefit: Flexibility. Whether you’re acquiring a business, building a new facility, or refinancing to free up cash flow, the B&I loan program is incredibly versatile and can meet a wide range of your capital needs, helping you make sound, long-term decisions.
Rural Energy for America Program (REAP)
Purpose: REAP provides crucial loan guarantees and grant funding to agricultural producers and rural small businesses for:
- Renewable energy systems (e.g., solar, wind, biomass, geothermal)
- Energy efficiency improvements (e.g., HVAC, insulation, lighting)
- New energy-efficient equipment for agricultural production and processing
Eligible Applicants:
- Agricultural producers
- Rural small businesses
Government Fees:
- 1% initial guarantee fee
- .25% guarantee retention fee (paid by the lender)
Key Benefit: With utility costs consistently on the rise, REAP offers a smart opportunity to invest in long-term cost savings and environmental stewardship—all while reducing your energy bill and boosting your bottom line. It’s about being resourceful and thinking ahead for future generations.
Why It Matters for Northern Colorado, Western Nebraska, and Eastern Wyoming
The markets we cover in Colorado, Nebraska, and Wyoming are hubs of agriculture, technology, manufacturing, energy, and healthcare. This creates significant opportunities for our surrounding rural communities to leverage this economic momentum. We see the potential in every corner of this land.
Whether you’re running a welding shop in Weld County, managing a grain facility in Cheyenne County, or growing an energy startup in Morgan County—these USDA programs can help you build capacity, reduce risk, and expand with confidence. It’s about empowering your resilience.
The truth is, rural business is the backbone of America’s economy. Across the country, small businesses account for 44% of U.S. GDP and 46.4% of the private workforce.
When small businesses like yours grow, our communities thrive. And at Points West Community Bank, we genuinely believe that every rural entrepreneur deserves access to the tools, capital, and unwavering support they need to succeed. It’s simply the right thing to do.
Final Thoughts: Let’s Turn This Opportunity Into Action
With over $1 billion in USDA funding still available and a firm deadline of September 30, 2025, the time to explore your options is now. While these programs aren’t a fit for every business, if you operate in a rural area and have been putting off a capital project, now is an excellent time to evaluate how a government guarantee could enhance your next big move. We’re here to help you weigh the pros and cons.
At Points West Community Bank, it’s our mission to support the very roots of our communities—and those roots are nurtured and grown by small businesses just like yours. We take pride in being a reliable presence.
Let’s have a conversation about how we can work together to turn this unique opportunity into something lasting and meaningful for your business, your family, and your community. Visit your local Points West branch or contact your local lender directly to start the conversation today. We’re ready to listen.