# Presentation: 689816

## United States Department of Agriculture

- Rural Development
**Intermediary Relending Program**

-  OBJECTIVE
- To finance business facilities and community development projects in rural areas.
-  ELIGIBLE BORROWERS
- Intermediaries may be non-profit corporations, Indian tribes, public agencies, and cooperatives.  Intermediaries must have:
-   Legal Authority		 Recent experience in loan making and servicing
-   An acceptable delinquency rate	 Experienced staff with background and expertise
-   Repayment ability		 Financial staff with background and expertise
-   No other source of credit available at reasonable rates and terms
-   A minimum of 51% U.S. ownership or legal residents
-  LOAN PURPOSES
- _Intermediaries_ - To provide loans to ultimate recipients in accordance with FmHA regulations.  Certification required prior to Rural Development concurrence.
- _Ultimate Recipients_ - Loans must be used for community development projects, new business or expansion, creation or saving of jobs particularly for low-income persons and displaced farm families.  Funds may be used for purchase, construction, repair, expansion, pollution control, operating expenses, working capital, feasibility studies, interest, etc.
- Interest income and other authorized fees received by the intermediary may be used to pay for administrative costs, technical assistance, loan losses, and principal repayment.  Any proceeds in excess of these allowable charges must revolve back to the IRP fund for further relending.
-  INELIGIBLE LOAN PURPOSES
- Funds may _**not**_ be used for:
- Payment of intermediary’s administrative expenses
- The purchase of excessive goods or services
- Payment to owners, partners, shareholders, family members, etc. when/such individuals
-       will retain any interest in the business
- Charitable and educational institutions, churches or fraternal organizations
- Assistance to government employees (civilian or military) or officers, owners or
-       principals of the ultimate recipient
- A loan to an ultimate recipient which has an application pending or a loan from another
-       intermediary without prior written approval
- Financing more than 75% of a project
- Total IRP assistance is greater than $250,000.
- Agricultural production
- Transfer of ownership except to keep a business from closing or to prevent the loss of
-       employment
- Community antenna TV service of facilities
- Any illegal activity
- Any otherwise eligible project that is in violation of environmental regulations
- Golf courses, race tracks, or gambling facilities
- Lending and investment institutions and insurance companies

## INQUIRIES  

- Loans to intermediaries are scheduled for repayment over a period of up to 30 years at 1% interest per annum.
- Initial loans to intermediaries may be up to $2 million, with subsequent loans of up to $1 million per year to a total of up to $15 million.
- Intermediary loans to ultimate recipients cannot exceed $250,000.  Length of the loan and interest rate charged are negotiated between parties.
-  SECURITY
- All loans to intermediaries and ultimate recipients must be secured in such a manner as to insure reasonable and orderly repayment of the loan.
- _Intermediaries_ - Security will normally consist of a lien on the IRP revolving funds and any other funds or property agreed upon by Rural Development and the intermediary.
- _Ultimate Recipients_ - Security requirements will be negotiated between the intermediary and the ultimate recipient; however, Rural Development may require additional security if necessary to protect the government’s interest.  Security documents will be assigned to Rural Development but recorded only at Rural Development’s discretion.
-  CONFLICT OF INTEREST
- Rural Development will make the final decision regarding conflict of interest issues.  No assistance will be approved until any conflict has been resolved.
-  POST AWARD REQUIREMENTS
- Post closing activities will be governed by the loan agreement, work plan, etc.  Rural Development concurrence is required prior to making any loan commitment to an ultimate recipient.  All funds derived from IRP lending should be deposited in an interest-bearing account covered by FDIC.  Interest earned on these funds will be used only for authorized purposes.
-   FEES AND CHARGES
- A late payment may be charged to an ultimate recipient when a payment is not received in accordance with terms of the loan. All fees and charges must be specifically documented and justified on the intermediary’s application.  Limited packaging and investment banker fees are permissible with Rural Development written approval.
-  OTHER REGULATORY REQUIREMENTS
-  Intergovernmental Review - Can be waived for some loan purposes such as working capital,
-     equipment purchases and refinancing.
-  Environmental Requirements - Class II assessment required for ALL loans to Intermediaries.
-     Ultimate recipient loans are governed by the nature of the proposed project.
- Insurance requirements will be agreed upon between the Intermediary and the ultimate recipient with
- Rural Development concurrence.
- Applications - Form RD 1948-1 - Application requirements and loan priorities can be found in RD
- Instruction 1948-C.  Copies can be obtained from the Rural Business-Cooperative Service in the
- State Office.
- INQUIRIES  
- United States Department of Agriculture
-     Rural Development
- 967 Illinois Avenue, Suite 4
- PO Box 405
- Bangor, ME  04402-0405
- (207) 990-9168
- TDD/TTY: (207) 942-7331
- email: rbs.info@me.usda.gov
- www.rurdev.usda.gov/rbs
- Rural Development is an Equal Opportunity lender and employer.  12/05

## Intermediary Relending Program Participants12.05

- Contact Person: 	 Mr. Duane P. Walton
- Organization:    	 Northern Maine Development  	 Commission
- Address:              	 PO Box 779
- City, State, Zip:   	 Caribou, ME 04736
- Phone:                	 (207) 498-8736/1-800-427-8736
- Fax:                     	 (207) 493-3108
- Service Area:		Aroostook
- E-mail Address:	dwalton@nmdc.org
- Contact Person:	Mr. Brett Doney
- Organization:		Western Maine Development
- Address:		150 Main Street, Suite 2
- City, State, Zip:	South Paris, ME  04281
- Phone:		(207) 743-8830
- Fax:		(207) 743-5917
- Service Area:		Norway, Paris, Oxford, Harrison, 	Waterford, Hebron, West Paris, and 	Otisfield
- E-mail Address:	brett@oxfordhills.org
- Contact Person:	Mr. Joseph Balchunas
- Organization:		Androscoggin Valley Council of 	Governments
- Address:		125 Manley Road
- City, State, Zip:	Auburn, ME  04210
- Phone:		(207) 783-9186
- Fax:		(207) 783-5211
- Service Area:		Androscoggin, Franklin, and Oxford 	Counties
- E-mail Address:	jbalchunas@avcog.org
- Contact Person:	Mr. Kenneth St. Amand
- Organization:		Lewiston-Auburn Economic Growth 	Council
- Address:		PO Box 1188
- City, State, Zip	Lewiston, ME  04243-1188
- Phone:		(207) 784-0161
- Fax:		(207) 786-4412
- Service Area:		Auburn, Maine
- E-mail Address:	finance@economicgrowth.org
- Contact Person:	Charles Emmons
- Organization:		Finance Authority of Maine
- Address:		PO Box 949
- City, State, Zip:	Augusta, ME  04333-0949
- Phone:		(207) 623-3263/1-800-228-3734
- Fax:		(207) 623-0095
- Service Area:		State of Maine
- E-mail Address:	cemmons@famemaine.com
- Contact Person:	Mr. Dan Feeney
- Organization:		Town of Lisbon
- Address:		300 Lisbon Street
- City, State, Zip:	Lisbon, ME  04250
- Phone:		(207) 353-3000
- Fax:		(207) 353-3007
- Service Area:		Town of Lisbon
- E-mail Address:	djfeeney@lisbonme.org

- Contact Person:		Ms. Victoria Burpee
- Organization:		Eastern Maine Development 	Corporation
- Address:		40 Harlow Street
- City, State, Zip:		Bangor, ME  04402-2579
- Phone:		(207) 942-6389
- Fax:		(207) 942-3548
- Service Area:		Eastern, ME, Washington, Knox, 	Hancock, Waldo, Piscataquis, & 	Penobscot Counties
- E-mail Address:	vburpee@emdc.org
- Contact Person:		Mr. Vic Reinfelds
- Organization:		Kennebec Valley Council of 	Governments
- Address:		17 Main Street
- City, State, Zip:		Fairfield, ME 04937-1119
- Phone:		(207) 453-4258
- Fax:		(207) 453-4264
- Service Area:		Somerset & Kennebec Counties and 	six towns in Waldo County
- E-mail Address:	vreinfelds@kvcog.org
- Contact Person:		Mr. William O. Armitage
- Organization:		Biddeford-Saco Area Economic 	Development Corporation
- Address:		190 Main Street, PO Box 536
- City, State, Zip:		Saco, ME 04072
- Phone:		(207) 282-1748
- Fax:		(207) 282-3149
- Service Area:		Biddeford & Saco, Maine and 	surrounding areas
- E-mail Address:	willa@basedc.org
- Contact Person: 	Mr. Al Moroney
- Organization:		Coastal Enterprises, Inc.
- Address:		PO Box 268
- City, State, Zip:		Wiscasset, ME 04578-0268
- Phone:		(207) 882-7552
- Fax:		(207) 882-7308
- Service Area:		Primarily Midcoast Maine, able to 	serve whole State
- E-mail Address:	ahm@ceimaine.org
- Contact Person:		Ms. Wendy Landes
- Organization:		Caribou Chamber of Commerce and 	Industry
- Address:		24 Sweden Street, Suite 101
- City, State, Zip	:	Caribou, ME  04736
- Phone:		(207) 498-6156 / 1-800-722-7648
- Fax:		(207) 492-1362
- Service Area:		 Caribou
- E-mail Address:  	 wlandes@cariboumaine.net
- Contact Person:
- Organization:		City of Gardiner
- Address:		6 Church Street
- City, State, Zip:		Gardiner, ME  04345
- Phone:		(207) 582-6888
- Fax:		(207) 582-6895
- Service Area:		Kennebec County
- E-mail Address:	econdev@gardinermaine.com