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USDA Business Loans in Fargo, ND

Find lenders offering usda business loans in the Fargo, including Moorhead, West Fargo, and surrounding areas. Compare rates, terms, and programs from 2 lenders.

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Lenders
2
Typical Rate
Fixed or variable, negotiated with lender
Down Payment
10% existing business, 20% new business
Term
7-30 years by use of proceeds
Closing Time
60-120 days

Which USDA lenders serve Fargo?

2 lenders offering usda business loans in the Fargo, ND area.

Live Oak Banking Company

SBA

WILMINGTON, NC

One of the nation's top SBA 7(a) lenders, specializing in lending to small businesses across healthcare, veterinary, beverage, self-storage, and other industries. Offers SBA loans, USDA loans, conventional business loans, and commercial real estate financing.

628 SBA loans
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Celtic Bank Corporation

SBA

SALT LAKE CITY, UT

Industrial bank and top SBA preferred lender headquartered in Salt Lake City. Specializes in SBA 7(a) lending for business acquisitions, partner buyouts, commercial real estate, and working capital. Also offers USDA business loans.

442 SBA loans
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What does the Fargo commercial real estate market look like?

Fargo-Moorhead is the largest metro area in North Dakota, with a diversified economy that has outperformed the state's oil-dependent western region during energy downturns. The downtown Fargo submarket has seen significant reinvestment along Broadway and the adjacent Innovation District near North Dakota State University, where tech startups and coworking spaces have clustered. The West Fargo corridor along I-94 is the primary growth area for retail and industrial development, benefiting from strong population growth that has made Fargo one of the fastest-growing small metros in the Midwest. Healthcare anchors from Sanford Health and Essentia Health drive consistent medical office demand across the metro.

Key Economic Drivers

  • ●North Dakota State University research and technology transfer fueling the downtown Innovation District
  • ●Sanford Health's regional headquarters and medical campus generating sustained healthcare-related CRE demand
  • ●Microsoft's Fargo campus and a growing base of tech companies including Appareo Systems and Packet Digital
  • ●Agricultural services and food processing companies like Cass-Clay Creamery supporting industrial space absorption

Market Insight

North Dakota has no corporate income tax on the first $25,000 of taxable income and offers a Renaissance Zone program in downtown Fargo that provides up to five years of income and property tax exemptions for qualifying commercial investments.

How do usda business loans work in Fargo, North Dakota?

USDA Business & Industry (B&I) loans are lender-made, government-guaranteed loans for businesses in eligible rural areas. They can cover real estate, equipment, business acquisition, and working capital, with terms tied to use of proceeds and underwriting that looks a lot like a bank loan plus USDA eligibility. In the Fargo metro area, borrowers can access 2 lenders offering USDA financing, including Moorhead, West Fargo, and surrounding areas. Loan amounts typically range from $50K to $10M with rates from Fixed or variable, negotiated with lender.

Who should consider usda business loans?

  • Rural owner-user businesses
  • Food processing and manufacturing
  • Business acquisition in eligible rural areas
  • Equipment, real estate, and working capital needs

What are the key requirements?

  • Project generally in an eligible rural area outside cities or towns above 50,000
  • Tangible balance sheet equity typically at least 10% existing / 20% new business
  • Good credit history and repayment ability
  • Collateral and lender support strong enough for a USDA guarantee

Advantages

  • ✓FY2026 guarantee up to 85% on loans under $5M
  • ✓Long terms, up to 30 years on real estate
  • ✓Can cover real estate, equipment, acquisition, and working capital
  • ✓Rates are negotiated with the lender, not set by USDA

Considerations

  • •Project must be in an eligible rural area
  • •No lines of credit or rental housing
  • •Full lender underwriting plus USDA review
  • •Smaller lender pool than SBA

USDA Business Loans in Fargo FAQ

How many USDA lenders serve Fargo, ND? ▼
There are 2 lenders offering usda business loans in the Fargo metro area. Loan amounts typically range from 50K to 10M with rates from Fixed or variable, negotiated with lender.
What are USDA loan rates in Fargo? ▼
USDA loan rates in Fargo typically range from Fixed or variable, negotiated with lender, though exact rates depend on factors like your credit score, the property's cash flow, and loan-to-value ratio. Down payments usually run 10% existing business, 20% new business, and closing can take 60-120 days. Compare multiple Fargo-area lenders to find the best terms for your deal.
What qualifies as a rural area for USDA loans? ▼
USDA generally requires the project to be outside cities or towns above 50,000 population and outside adjacent urbanized areas. The safest move is to confirm the project address on the USDA eligibility map before you spend money on third-party reports.
Can USDA Business & Industry loans be used for working capital? ▼
Yes, in many cases. USDA says B&I proceeds can cover working capital, but term limits are shorter than for real estate or equipment, and the lender still has to show the deal cash flows.
What is the USDA guarantee percentage in 2026? ▼
USDA's FY2026 notice sets the standard B&I guarantee at 85% for loans under $5 million and 80% for loans from $5 million to $25 million, with a 90% tier for qualifying isolated rural Alaska projects. Separate USDA guidance says most single-borrower requests should still think in terms of a normal $10 million limit unless an exception is approved.
How long can a USDA business loan term run? ▼
The term depends on the use of proceeds. USDA training guidance allows up to 30 years for real estate, up to 15 years or useful life for machinery and equipment, and up to 7 years for working capital.

Other loan types in Fargo

🏛️

SBA 7(a) Loans in Fargo

Rates from Prime + 1.5% to 3.75%. 10-20% down.

 🏢

SBA 504 Loans in Fargo

Rates from Below market (CDC portion ~5-6%). 10% down.

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Commercial Mortgage in Fargo

Rates from 6% - 8%. 20-30% down.

Related resources

USDA Business Loans in North Dakota

Browse all USDA lenders serving ND.

USDA Business Loans Overview

Rates, requirements, and how USDA loans work.

All North Dakota Lenders

Browse all commercial lenders serving ND.

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