Funding Small Town Commercial Projects with Jordan Blanchard

A USDA loan does not have to mean farming. Jordan Blanchard works with businesses and investors using USDA backed financing for commercial projects in smaller communities across the United States and its eligible territories.

Jordan explains that the USDA definition of rural generally covers a town, city, or census tract with no more than 50,000 people, as long as it is not contiguous with another urban area.

That creates room for many types of projects. Excalibur Rural Capital has financed businesses ranging from almond processing to a sand terminal. The company also works heavily in hospitality and can finance commercial real estate purchases, construction, and equipment.

Jordan also walks through what his team looks for before approving a project. Ownership experience comes first. They also want to see equity already available, a source for more equity if challenges arise, and collateral that supports the loan.

Key topics and takeaways:

• What the USDA considers a rural community
• Why USDA business lending is focused on economic development rather than farms
• The types of commercial projects Excalibur Rural Capital finances
• Why ownership experience matters in underwriting
• Why all equity must go into the project before the loan funds
• How hospitality became a major part of USDA and SBA lending
• Why properties with more than one possible use can be attractive