Guaranteed Lending Specialists

Smart public finance isn’t just about spending—it’s about compounding returns. At GLSUSDA, we specialize in helping lenders and project sponsors access USDA Business & Industry (B&I) Loan Guarantees that not only strengthen rural communities, but also generate long-term tax revenue for state and local governments.

A 2025 economic assessment by Summit LLC shows that a 1% increase in B&I loan investment leads to a 0.55% increase in state sales tax revenue over time . It’s a rare example of government-backed financing that pays off twice: first in private sector growth, then in recurring public revenue.

The Multiplier Effect in Action

That 0.55% figure may seem modest—but it’s a multiplier. B&I loans fuel real business activity that flows into tax coffers through:

Equipment and goods purchases
Payroll and hiring
Local consumer spending
Supplier contracts and infrastructure upgrades

In short, the money doesn’t sit idle—it moves, accelerates, and multiplies. The Summit report confirmed this pattern across multiple states and industries: every dollar lent circulates through local economies, boosting taxable transactions region-wide.

Why Policymakers Should Take Note

Compared to tax abatements or grants, USDA B&I loans are:

Performance-based (businesses must qualify, perform, and repay)
Risk-sharing (backed by federal guarantee, not state liability)
Targeted to job creation in rural areas that need it most

That’s why state and municipal officials increasingly view B&I financing as a smart lever:

Creates fiscal returns without raising tax rates
Strengthens the rural tax base
Enhances regional resilience through economic diversity

For sales tax–dependent states, this is especially meaningful. The Summit study shows B&I loans support a stronger, broader tax base that lifts revenue without added burden.

What the Research Says

Using county-level sales tax and investment data from 2012–2022, Summit LLC found:

Counties with B&I loans experienced significantly higher long-run sales tax growth than those without.
The 0.55% sales tax revenue increase per 1% B&I investment was consistent across different geographies.
Effects held even after accounting for inflation, demographic shifts, and broader economic changes.

This suggests the B&I program is not just delivering growth—it’s delivering it in a way that pays governments back over time.

Case Study: Oklahoma’s Revenue Potential

Let’s run the numbers. Between 2015 and 2024, Oklahoma businesses secured $665 million in USDA B&I loan guarantees. According to the Summit model:

A 10% increase in B&I volume would result in a 5.5% boost to Oklahoma’s sales tax revenue.
With ~$3 billion in annual sales tax collections, that’s over $165 million in recurring revenue .

These gains aren’t one-time—they compound as businesses grow, hire, and sell more locally.

GLSUSDA has been deeply involved in structuring B&I loans across Oklahoma and the Central Plains. Our team has packaged and supported over $600 million in USDA-backed deals across multiple sectors—manufacturing, healthcare, logistics, energy, and beyond.

How GLSUSDA Supports Smarter Economic Growth

GLS is a national leader in USDA loan packaging and advisory. Whether you're a lender, business owner, or public official, we help you:

Assess project eligibility & geographic alignment
Model sales tax and employment impacts
Package applications that meet USDA and lender criteria
Pair USDA loans with Opportunity Zones and state incentives

We understand the big picture—and the fine print.

Final Thought: This Is What Smart Investment Looks Like

Not every economic development tool delivers hard returns. The USDA B&I program does. It:

Drives business formation
Generates measurable tax revenue
Operates on strong credit principles
Aligns federal support with local outcomes

If you're ready to leverage public tools for long-term fiscal gain, GLSUSDA is ready to help.

Contact GLSUSDA → Let’s structure rural capital that pays public dividend