Overview
Maynard Nexsen is a leader in representing lending institutions throughout the United States in financings guaranteed by the U.S. Department of Agriculture (USDA). We have closed USDA-guaranteed loans in almost every state in the country, to finance a wide variety of projects and facilities - from rural hospitals, rural healthcare clinics, and physician offices, to a wide spectrum of small to large businesses, such as hydroponic farming operations to cutting edge alternative energy projects, we have experienced it all.
We specialize in assisting lenders with loans guaranteed through the USDA Rural Development Loan programs. We understand the challenges that arise in these unique transactions. Whether you are a lender seeking guidance as you navigate the USDA loan closing process, or an existing borrower looking to ensure compliance with program requirements, the attorneys at Maynard Nexsen can provide the expertise and support you need to succeed.
Navigating the USDA loan process can be complex and time-consuming, particularly for lenders unfamiliar with the various USDA programs and lending requirements. For over 15 years, we have helped banks, credit unions, and non-traditional lending institutions close USDA-guaranteed loans successfully. Financings can range from $250,000 to more than $200M, depending on the size and nature of the project being financed. We assist lenders in navigating the regulatory requirements for loan eligibility and prepare the legal documents necessary to evidence the loans and to secure the necessary collateral to secure them. We can review due diligence and collateral information to ensure compliance with USDA requirements and the lender’s underwriting terms. And when a loan is closed, we work with lenders to secure the timely issuance of the USDA Loan Note Guarantee.
We also have extensive experience with transactions that involve multiple funding sources in addition to a USDA-guaranteed loan, such as SBA loans, traditional commercial loans, or C-PACE financings. Many transactions in today’s market also involve tax credits and incentives, such as New Market Tax Credits or Historic Rehabilitation Tax Credits (federal and/or state programs). Our team understands the complex transactional and collateral structures involved in these financings and how to close these transactions while complying with USDA regulations and the conditional commitment for the loan guarantee.
Once a loan has been approved and a Conditional Commitment has been issued by the USDA, we help ensure compliance with the conditions to closing and guarantee issuance. And after a loan closes, we can also assist lenders in complying with their ongoing servicing requirements, including reporting and monitoring obligations, loan modifications and extensions, and work-out and foreclosure services. We understand that ongoing compliance is essential to preserving a lender’s eligibility for USDA Rural Development Loans, and we are committed to providing the support you need. Lenders can also rely on our assistance in preparing participation agreements with secondary funding sources and with secondary market contracts. Our bankruptcy and litigation attorneys also have extensive experience in representing lenders involved in the work-out of USDA-guaranteed loans, or the foreclosure and liquidation of collateral in the unlikely event of borrower default.
At the heart of our services is a commitment to our clients' success. Knowing that each transaction is unique, we take the time to understand your specific needs and goals and work closely with you throughout the loan closing process. Whether you are a lender seeking assistance with a USDA Rural Development Loan or an existing borrower looking to ensure compliance with program requirements, our team is here to help.
Experience
The Maynard Nexsen USDA financing team has represented lenders on the following sample transactions:
- A $35M+ loan to a poultry processing cooperative located in Iowa, guaranteed by the USDA through the Food Supply Chain Guaranteed Loan Program, secured by equipment, machinery, and real property.
- A $25M loan to a copper mining company located in Utah, guaranteed by the USDA through the Business & Industry Guaranteed Loan program, secured by all capital assets and mining equipment.
- A $32M+ construction loan for the construction of a critical access hospital in Colorado, guaranteed by the USDA through the Community Facilities Guaranteed Loan program, and in part financed by a direct loan from the USDA, and secured in parity by personal property, including construction materials, and real property.
- $70M+ of combined construction and term loans for financing two gas conversion projects in North Carolina, designed to capture methane gas from local landfills and conversion into renewable natural gas for distribution by local natural gas utilities. The financings utilized a combination of loan guarantees under the USDA Business & Industry Loan Guarantee program and under the USDA Rural Energy for America Program (REAP).
- A $60M construction loan for a new replacement hospital in rural North Dakota, which, upon completion, will be refinanced through a combination of a $50m USDA Direct Loan and a $10m commercial lender term loan supported by a USDA guarantee issued under the USDA’s Community Facilities Loan Guarantee program.
- A $120M+ construction and term loan to construct and equip a first-of-its-kind renewable fuels project in Reno, NV, to convert industrial corn oil, collected from ethanol plants throughout the mid-western U.S., into renewable diesel. Renewable fuel meets California and other States’ clean energy standards. The financing was guaranteed under the USDA’s “Section 9003 Program” (Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program).
- A series of construction and term loans to finance the construction and operations of hydroponics greenhouse facilities to grow and harvest leafy green vegetables for the Philadelphia, PA., Charlotte, NC, and Chicago, IL markets. The financings totaled over $40m and were guaranteed under the USDA Business & Industry Guaranteed Loan Program.
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