Intermediary Relending Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
This Rural Development IRP subsequent loan will be used to expand the current Revolving Loan Fund . Many of these counties include very small communities that likely would struggle to fund significant projects or improvements without funding support from this Subsequent IRP loan. This project will support local communities through the development of programs to help entrepreneurs, start-ups and existing businesses succeed and grow in the region. As a result of this project 12 jobs will be created and 191 jobs will be saved.
Program Objective
Establish revolving loan funds for the purpose of providing loans to ultimate recipients to promote community development, establish new businesses, establish and support microlending programs, and increase access to capital for start-ups and other small rural businesses and cooperatives in rural areas. Program performance is measured by the number of jobs created/saved and businesses assisted. The Agency tries to maintain a low default rate.
Eligibility
Eligible Applicants
- For-Profit Organization
- Small Business Person
Eligible intermediaries may include: Private nonprofit organizations, State or local governments, and Federally recognized Indian tribes and cooperatives.
How to Apply
Award Procedure
The application of each intermediary will be evaluated by the RD State Office. Applications received by RBS will be reviewed and ranked quarterly and funded in the order of priority ranking.
From 30 to 60 days.
Program details & compliance
Description
This program is to provide loanable funds for small entities. An entity that receives an Intermediary Relending Program (IRP) loan from the Rural Business-Cooperative Service (RBS) is referred to as an intermediary. Intermediaries must relend all of the loan funds received from the IRP loan for business facilities or community development in rural areas. An entity that receives a loan from an intermediary is referred to as an ultimate recipient. The maximum loan to any one intermediary is $2 million. The maximum term is 30 years and the interest rate is one percent per annum. Intermediaries may not use IRP funds to finance more than 75 percent of the cost of an ultimate recipient’s project or for a loan of more than $250,000 to one ultimate recipient. (No more than 25 percent of an IRP loan approved may be used for loans to ultimate recipients that exceed $150,000.).
Mission Categories
Primary: Small Business
Other categories:
Economic Development
Use of Funds
Allowed Uses
An entity that receives an Intermediary Relending Program (IRP) loan from the Rural Business-Cooperative Service (RBS) is referred to as an intermediary. Intermediaries must relend all of the loan funds received from the IRP loan for business facilities or community development in rural areas. An entity that receives a loan from an intermediary is referred to as an ultimate recipient. The maximum loan to any one intermediary is $2 million. The maximum term is 30 years and the interest rate is one percent per annum. Intermediaries may not use IRP funds to finance more than 75 percent of the cost of an ultimate recipient's project or for a loan of more than $250,000 to one ultimate recipient. (No more than 25 percent of an IRP loan approved may be used for loans to ultimate recipients that exceed $150,000.)
Required Documentation
Intermediaries must have adequate legal authority and a proven record of successfully assisting rural businesses and industries. Ultimate recipients must not be located within a city with a population of 25,000 or more. Both intermediaries and ultimate recipients must be unable to obtain the loan at reasonable rates and terms through commercial credit or other Federal, State, or local programs.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart F — Audit Requirements