303. USDA and SBA Loans Explained: How to Get 80 to 90% Leverage for Rural Deals with Jordan Blanchard
About this episode
Jordan Blanchard discusses the advantages of USDA and SBA loans for rural real estate investing with host Joe Jensen.
Jordan Blanchard joins host Joe Jensen to break down government guaranteed lending and why programs like SBA and USDA can be major leverage tools in today's market. Jordan explains the core advantages: higher leverage than conventional loans (often 80 to 90%), the ability to lend on projected income (not just historical cash flow), and fully amortizing terms that can stretch to 25 years for USDA deals. He also clarifies a key distinction: SBA is generally owner occupied (51% occupancy rules), while USDA can be used for non owner occupied income producing projects, as long as the deal is in an eligible "rural" area based on USDA mapping and population rules. The conversation gets practical with examples and requirements, including why USDA timelines are longer (often 4 to 6 months), why many borrowers buy or control land early, and why lenders typically want a signed tenant LOI rather than building on pure speculation. Jordan also introduces Commercial PACE as a way to stack capital for energy efficient construction and improve overall leverage. He closes with lessons learned from a failed multifamily investment, plus his personal mantra "seek discomfort" and a book…
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