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.
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.
| Programme | What it finances | Where 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 loans | Renewable 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.
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
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
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
Graduated grant assistance for essential community facilities, scaled by community population and median household income (7 CFR 3570.63). CF loans & grants
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:
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.
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.
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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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.