Construction Loans for USDA/Rural Development Projects

Construction Loan Options

USDA/Rural Development regulations require projects to find construction funds for the build out of the project before the USDA money becomes available. Our team includes experts in providing this interim financing at low, tax-exempt interest rates for these projects.

General Terms for Interim Construction Loan Programs for USDA Approved Projects

• Principal Amounts of $3,000,000 to $100,000,000

• Term up to 36 months

• Interim Loans based upon tax-exempt rates

• Interest rates from 1-2% (subject to term and credit)

• Security interest is the same as defined in the USDA Letter of Conditions

• A single principal and interest payment will be due at maturity (end of construction or USDA take out)

• MCM works to include local banks in the loan process

• Additional documentation to be provided by Borrower includes:

• 3 Years of Audited Financial Statements

• USDA Letter of Conditions

• Board Resolution

MCM provides USDA Interim construction loans using either a “Draw Option” or “Term Bond Option” (general terms noted above remain the same.) Other lenders often offer only one of these options based on the lender's objective (not the client’s.) MCM’s flexibility to offer both of the following options at the most competitive rates produces savings for our clients.

draw vs term


loan options chart

Timeline for Interim Loans

timeline for loans

MCM professionals can provide comparisons between options. Click links below for examples of active projects:

RUS Recipient

CFC Loan