Together, America Prospers

Intermediary Relending Program

What does this 

program do?

This program provides low-interest 

(1 percent) loans to local lenders 

– “intermediaries” – who then 

relend to businesses to help 

improve economic conditions and 

create jobs in rural communities. 

Who can apply?

The following groups are eligible 

to be intermediary lenders: 

• Nonprofit corporations

• Federally-recogized Tribes as 

defined by U.S. Department 

of the Interior Indian Affairs 

(information is available at this 

link: https://go.usa.gov/xz74x)

• Public agencies

• Cooperatives

Individuals, public or private 

organizations, or other legal 

entities are eligible apply for 

intermediary loans as “ultimate 

recipients” provided:

• U.S. citizens or permanent 

residents hold majority 

ownership in the 

business applying

• The applicant owes no delinquent 

debt to the U.S. Government

• The applicant cannot get 

affordable commercial financing 

for the project elsewhere

• The project is located in an 

eligible rural area (information 

is available at this link: 

https://go.usa.gov/xz72E)

• The applicant has no 

influence, or legal or financial 

interest in the work of the 

intermediary lender

Are there other requirements?

Intermediary lenders must:

• Have the legal authority to operate a 

Revolving Loan Fund (RLF)

• Confirm the intermediary is advised 

by a board comprised of business 

and civic leaders

• Show an established record 

of successfully assisting rural 

businesses and communities, 

including experience making and 

servicing commercial loans

• Provide adequate assurance of the 

ability to repay the loan

• Demonstrate capitalization or equity 

sufficient to maintain lending and 

business operations

• Be able to close an IRP loan within 

six months of its approval

How much funding is available 

to intermediaries?

• Up to $1 million

• Total outstanding debt from the 

IRP to a single intermediary cannot 

exceed $15 million

What are the terms for 

the intermediary lender?

• Interest rates are fixed at 1 percent

• The maximum term is 30 years

• Interest-only payments are 

permitted for the first three years

• In the first six months after closing, 

$250,000 or more of loan funds 

must be used

What is the maximum loan amount 

available to ultimate recipients?

The maximum loan amount available 

to an ultimate recipient is $400,000, or 

50 percent of the loan to an intermediary 

lender; whichever is less. 

What are the rates, terms, and 

payment structure on the loan to 

the ultimate recipient?

Rates and terms are set by the 

intermediary lender, and must cover 

the cost of operating and continuing 

the revolving loan fund. In the first 

six months after closing, $250,000 or 

more of the loan funds must be used. 

How can funds be used?

• Promote community development

• Establish a new business

• Form and support 

microlending programs

• Create or retain jobs

• Buy, build, convert, expand, or repair 

a business or its facility, especially if 

jobs will be created or saved

• Purchase or develop land, including 

easements, rights-of-way, buildings, 

leases, and materials

• Buy equipment, machinery 

or supplies, or make other 

leasehold improvements

• Cover eligible start-up costs and 

working capital

• Address pollution control 

and abatement

• Support transportation services

• Pay for feasibility studies and 

professional fees (such as 

architects, engineers, attorneys, 

and accountants) 

• Build hotels, motels or 

convention centers

• Support educational institutions

• Promote aquaculture-based rural 

small businesses

• Establish revolving lines of credit 

as described in 7 CFR Part 

4274.320 (available at this link: 

https://go.usa.gov/xz7B4)

NOTE: Ineligible loan purposes can be 

found in 7 CFR Part 4274.321 (available 

at this link: https://go.usa.gov/xz7B8)
Intermediary Relending Program

How can an organization become an 

intermediary lender?

Contact your local Rural Development 

office (a list is available at this link: 

https://go.usa.gov/xz7k6) to learn how 

to become an RLF lender.

What is an eligible area?

• Rural areas outside of cities or

towns with populations of less than

50,000 are eligible.

• Urbanized areas near cities with

populations of 50,000 or more must

be checked for eligibility.

• The borrower’s headquarters can be

based within a larger city as long as

the project service area is located in

an eligible rural area.

• The lender can be located anywhere.

You can check eligible addresses for 

Rural Business-Cooperative programs 

at this link: https://go.usa.gov/xz72E.

How do we get started?

To apply, contact your local Rural 

Development office (a list is available 

at this link: https://go.usa.gov/xz7k6).

Who can answer questions?

• Intermediaries and ultimate

recipients can contact an IRP

intermediary lender serving your

area. You can also contact your

local office for assistance.

What governs this program?

• Basic program: 7 CFR Part 4274

(available at this link:

https://go.usa.gov/xJTDu)

• Loan servicing: 7 CFR Part 1951R

(available at this link:

https://go.usa.gov/xungE - PDF)

• This program is authorized by the

Food Security Act of 1985,

Pub L. 99-198 (available at this link:

https://go.usa.gov/xz79X - PDF).

Why does USDA Rural Development 

do this?

The purpose of the IRP is to help 

address poverty by increasing 

economic activity and employment 

in rural communities - with added 

emphasis on communities considered 

particularly disadvantaged or remote. 

Intermediaries are encouraged to focus 

on state- and region-based strategies, 

and to work in partnership with other 

public and private organizations that 

can provide complementary resources.

NOTE: Because citations and other information are subject to change, always 

consult the program instructions listed in the section above titled “What Governs 

This Program?” You can also contact your local office for assistance (a list is 

available at this link: https://go.usa.gov/xzjP7). You will find additional forms, 

resources, and program information at rd.usda.gov. USDA is an equal opportunity 

provider, employer, and lender.

Last Updated May 2022