On Mon, 12 Sep 2005 23:45:00 -0400, in misc.consumers.frugal-living "Chris"
wrote:


"SoCalMike" wrote in message
...
Chris wrote:
It's not welfare, it's a loan with a low interest rate. Funny how only
in this
country "welfare" is a bad word. We are so brainwashed in this country.


I am open ears as to what program this is? Better yet what are the
qualifications?
Please do tell!


doesnt HUD give loans?


HUD guarantees loans to the original loaner or mortgagee. Much like PMI
that us working stiffs pay for, if needed. In other words, another source
of welfare provided by our government.

This is, given his comments, as our disillusioned friend has, another
handout from our government. Although the welfare poster may be correct,
many government programs barley trust them to pay the mortgage they insure,
yet alone the associated flood insurance. Nor do they trust the homeowner's
intelligence to select a safe home, thus the strict guidance on their
insurance. More or less when you are getting mortgage insurance from the
government, they will assume your are an idiot and provide strict guidelines
on the home you purchase. At less some savings for us working stiffs.


Yep it's welfare alright... CORPORATE WELFARE

You're just a racist, if you were worried about Welfare dollars and where they
go you would focus on corporate welfare. Racism is ugly in any color.


Business and Industry Guaranteed Loans

The Business and Industry (B&I) Guaranteed Loan Program helps create jobs and
stimulates rural economies by providing financial backing for rural businesses.
This program provides guarantees up to 80 percent of a loan made by a commercial
lender. Loan proceeds may be used for working capital, machinery and equipment,
buildings and real estate, and certain types of debt refinancing. The primary
purpose is to create and maintain employment and improve the economic climate in
rural communities. This is achieved by expanding the lending capability of
private lenders in rural areas, helping them make and service quality loans that
provide lasting community benefits. This program represents a true private-
public partnership.

B&I loan guarantees can be extended to loans made by recognized commercial or
other authorized lenders in rural areas (this includes all areas other than
cities of more than 50,000 people and the contiguous and urbanized area of such
cities or towns). Generally, authorized lenders include Federal or State
chartered banks, credit unions, insurance companies, savings and loan
associations, Farm Credit Banks or other Farm Credit System institutions with
direct lending authority, a mortgage company that is part of a bank holding
company, and the National Rural Utilities Finance Corporation. Other loan
sources include eligible Rural Utilities Service electric and telecommunications
borrowers and other lenders approved by RBS who have met the designated
criteria.

Assistance under the B&I Guaranteed Loan Program is available to virtually any
legally organized entity, including a cooperative, corporation, partnership,
trust or other profit or nonprofit entity, Indian tribe or Federally recognized
tribal group, municipality, county, or other political subdivision of a State.
Applicants need not have been denied credit elsewhere to apply for this program.

The maximum aggregate B&I Guaranteed Loan(s) amount that can be offered to any
one borrower under this program is $25 million. A maximum of 10 percent of
program funding is available to value-added cooperative organizations for loans
above $25 million to a maximum aggregate of $40 million.



The following financial data is as of September 30, 2004:
Obligations by State for 2000 through 2004




Memorandum of Agreement with Colson Services Corporation, a subsidiary of JP
Morgan Chase Bank The agreement will provide greater opportunity for rural
lenders to participate in Rural Development's Business and Industry (B&I)
guaranteed loan program.

Program Administration

The program is administered at the State level by Rural Development State
Offices. To obtain the addresses and telephone numbers of State Offices, visit
the Rural Development Field Office locator. For further information on this
program, please call the State Office servicing your State.

Available online forms can be found at www.sc.egov.usda.gov