Intermediary Loan Program
Program Objective
Three year pilot program in which SBA made direct loans of up to $1 million at an interest rate of 1 percent to up to 20 nonprofit lending intermediaries each year, subject to the availability of funds. Term of ILP loans is for a maximum period of 20 years with deferred payments for the first two years. Intermediaries use the ILP loan funds to make loans of up to $200,000 to startup, newly established, or growing small business concerns. No small business (including affiliates) may have more than $200,000 outstanding under this program at one time.
Eligibility
Eligible Applicants
- Small Business Person
Applicants to the pilot program were required to be a private nonprofit entity with not less than one year of experience of making loans to startups, newly established or growing small businesses. The applicant must have directly funded the loans and not simply provided referrals to loans made by another entity. If an applicant is made up of a consortium of organizations, each member of the consortium must be individually eligible. Intermediaries that participate in SBA's microloan program were not eligible to become ILP intermediaries. However, affiliates of microloan intermediaries may have applied. Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007 for additional information.
Beneficiaries
- Small Business Person
Not necessary
How to Apply
Award Procedure
Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007.
Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007.
Program details & compliance
Description
Three year pilot program in which SBA made direct loans of up to $1 million at an interest rate of 1 percent to up to 20 nonprofit lending intermediaries each year, subject to the availability of funds. Term of ILP loans is for a maximum period of 20 years with deferred payments for the first two years. Intermediaries use the ILP loan funds to make loans of up to $200,000 to startup, newly established, or growing small business concerns. No small business (including affiliates) may have more than $200,000 outstanding under this program at one time.
Mission Categories
Primary: Small Business
Other categories:
Minority Business Enterprise
Use of Funds
Allowed Uses
Loans shall be made for startup, newly established, and growing small business concerns for working capital, real estate, and the acquisition of materials, supplies, furniture, fixtures, and equipment. $20 million was set aside for this program each in FY 2011 and FY 2012. Three year pilot program in which SBA made direct loans of up to $1 million at an interest rate of 1 percent of up to 20 nonprofit lending intermediaries each year, subject to the availability of funds. Term of loans is for a maximum period of 20 years with deferred payments for the first two years. No ILP loan was made to an eligible intermediary if the total amount of outstanding and committed to the eligible intermediary would, as a result of the loan, exceed $1 million during the participation of the eligible intermediary in the program.
Required Documentation
Generally applicants submitted an application which included financial statements, certificate of good standing, resumes of individuals associated with the organization, business plan, at least one year experience of making small business loans $50,000 to $200,000, documentation supporting non-profit status, and plan for distributing loan funds within two years.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart F — Audit Requirements
Formula
Small Business Administration