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The 20% rule for USDA refers to the requirement that applicants must demonstrate the ability to provide at least 20% of the total project costs through equity or other funds when applying for financing under the USDA RD 4279-5 guidelines. This rule ensures that borrowers have a vested interest in the success of the project, which can lead to better financial management and outcomes. By understanding this requirement, you can prepare your application more effectively and increase your chances of approval. For those applying under USDA RD 4279-5, utilizing the USLegalForms platform can provide the necessary tools and resources to navigate this process smoothly.
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