1998Practice founded3,969Feasibility studies1,283SBA studies823USDA studies$41.2BProject value evaluatedSince 1982Institutional underwritingMAI · ASA-GC · BCA · CMEAIn-house valuation designations
Wert-Berater, Inc.
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Financing Programs · USDA Rural Development

USDA Business Financing

USDA Rural Development does not run one rural business loan. It runs a family of programmes, four of which share a single guaranteed-loan rule set — OneRD, at 7 CFR part 5001 — and several more that award grants under their own parts of the regulations. The programme a project belongs in is decided by what it is and where it sits, not by what the sponsor would prefer. This hub maps the programmes and what each one asks an applicant to prove.

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One rule set, four programmes. Business & Industry (B&I), Community Facilities (CF), Water and Waste Disposal (WWD) and the Rural Energy for America Program (REAP) guaranteed loans are all processed under 7 CFR part 5001.

The lender applies, not the borrower. Under a guarantee programme a commercial lender makes the loan and submits the application; USDA guarantees part of it.

Grants are separate. REAP grants, Value-Added Producer Grants, Rural Business Development Grants and Community Facilities grants are competitive awards with their own regulations, scoring and matching rules.

Scope of practice. Wert-Berater, Inc. does not arrange, broker or place debt or equity capital, and is not a lender, a Certified Development Company or a loan packager. The firm prepares the independent feasibility, market, valuation and financial analysis that lenders and agencies require, and is paid a fixed fee for that analysis whether or not the financing closes.

The OneRD guaranteed loan programmes

Guaranteed loans processed under 7 CFR part 5001
ProgrammeWhat it financesWhere the analysis lands
Business & Industry (B&I)Commercial and industrial projects in rural areas — acquisition, construction, equipment, working capital and certain refinancing.A feasibility study prepared by an independent qualified consultant is required for guaranteed loans greater than $1,000,000 to a new business (7 CFR 5001.306).
Community Facilities (CF)Essential community facilities serving rural areas — health care, education, public safety and similar.A financial feasibility report prepared by a qualified firm or individual acceptable to the Agency, subject to the exceptions in 7 CFR 5001.304.
Water and Waste Disposal (WWD)Water, sewer, storm water and solid waste systems serving rural areas.Credit analysis under 7 CFR 5001.202 plus the programme-specific submissions at 7 CFR 5001.305.
REAP guaranteed loansRenewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses.A technical report for every eligible project, and for renewable energy systems a feasibility analysis when the lender or Agency deems it necessary (7 CFR 5001.307).

The programme pages go into detail: USDA B&I guaranteed loans, USDA Community Facilities, and the water and waste side on USDA water & waste disposal feasibility studies.

The grant programmes

REAP grants

Renewable energy systems and energy efficiency improvements. Grants are capped at 25 percent of total eligible project costs, with programme minimums and maximums set in the rule (7 CFR 4280.111). REAP grants

Value-Added Producer Grants

Planning and working capital grants for producers adding value to a commodity they grow. Matching funds must at least equal the grant, and a feasibility study by a qualified consultant is required for working capital awards. VAPG

Rural Business Development Grants

Awards to public bodies, tribes and non-profits for enterprise and opportunity projects that support rural small businesses rather than the applicant’s own operations. RBDG

Community Facilities grants

Graduated grant assistance for essential community facilities, scaled by community population and median household income (7 CFR 3570.63). CF loans & grants

What USDA files have in common

Whatever the programme, the file has to answer the same question in the agency’s own terms: is the project technically feasible, is there a market for what it will produce or serve, and will the revenue support the debt or justify the award? Three features recur:

  • Independence. Where the rules call for a feasibility study, they call for one prepared by an independent qualified consultant acceptable to the Agency — not by the borrower, and not by the lender.
  • Documented assumptions. Projections have to be traceable to evidence: demand analysis, comparable operations, contracts, pricing and cost sources, not a spreadsheet that grows at a chosen rate.
  • Capital in the deal. Guaranteed-loan borrowers must meet capital and equity tests at closing, and grant applicants must show matching funds where the programme requires them.

Our long-form guide to the guaranteed-loan analysis is on USDA OneRD guaranteed loan feasibility studies, and the 37 elements the rule names are walked through in the 37 factors of 7 CFR 5001.

Where Wert-Berater fits

The firm is the independent consultant, not a party to the financing. On USDA engagements that usually means one of four deliverables: a feasibility study meeting the programme’s scope; a business plan supporting a grant application; a market study standing behind demand; or an appraisal where the lender needs a value conclusion. Fees are fixed and quoted in one business day, and the fee is the same whether the agency approves the request or not.

Last reviewed September 2026. Programme rules change; the citations above point to the current text of the regulations.

Frequently asked questions

Does USDA lend directly to businesses?
Under the OneRD programmes covered here, no — a commercial lender makes the loan and USDA guarantees part of it. USDA does run direct loan programmes in other parts of its portfolio, but B&I, CF, WWD and REAP guaranteed loans are lender-originated.
Which USDA programme fits my project?
It follows from the project. A rural business or processing facility is usually B&I; an essential public facility is CF; a water or sewer system is WWD; an energy system or efficiency retrofit is REAP; and value-added processing by the producer themselves may qualify for a Value-Added Producer Grant.
When is a feasibility study required?
For B&I, a study by an independent qualified consultant is required for guaranteed loans greater than $1,000,000 to a new business. For CF, a financial feasibility report is required subject to the exceptions in 7 CFR 5001.304, and a full feasibility study is required for loans over $1,000,000 to a new entity or new activity.
Can Wert-Berater submit the application?
No. The lender submits a guaranteed-loan application and the applicant submits a grant application. The firm prepares the independent analysis those applications carry.
Need the independent analysis a USDA file requires?

Fixed fee quoted in one business day; delivery in 10–15 business days. Independent analysis only — Wert-Berater does not arrange, broker or place capital.

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USDA programmes
B&I guaranteed loans Community Facilities REAP Value-Added Producer Grants RBDG
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Legal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.

Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.

All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.

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