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# Intermediary Relending Program

**Fact Sheet

Federal Register Notice

##             Overview          

**What does this program do?**

**Who may apply to be an intermediary lender?**
                                  - Nonprofits and cooperatives.
                                  - Federally-recognized tribes.
                                  - Public agencies.
                                  - Cooperatives

**The following are eligible to apply for a loan from the intermediary lender as an ultimate recipient:**
                                  - Ultimate recipients may be individuals, public or private organizations or other legal entities, given that:	                                     - Majority ownership is held by U.S. citizens or permanent residents.  (1)
                                    - The applicant owes no delinquent debt to the Federal Government.
                                    - The applicant is unable to obtain affordable commercial financing for the project elsewhere.
                                    - The project is located in an eligible rural area -  Check Eligibility.
                                    - The applicant has no legal or financial interest or influence in the work of the intermediary lender.

**Are there other requirements?**
                                  - The legal authority to operate a Revolving Loan Fund (RLF)  (2) .
                                  - A record of successfully assisting rural businesses and communities, normally including experience making and servicing commercial loans.
                                  - The ability to provide adequate assurance of repayment of the loan.
                                  - Capitalization or equity sufficient to sustain its lending and business operations.
                                  - Majority outstanding interest or membership must be composed of U.S. citizens.
                                  - Intermediary and principals must have no Federal delinquent debt.
                                  - Unable to finance the fund through its own sources or other conventional financing.
                                  - The ability to close the IRP loan within six months of loan approval.
                                  - A board consisting of business and civic leaders.

**How much funding is available to intermediaries?**
                                  - Up to $1 million
                                  - Total outstanding debt from the IRP, to a single intermediary, may not exceed $15 million.

**What are the terms for the intermediary lender?**
                                  - The interest rate is fixed at 1 percent.
                                  - The maximum term is 30 years.
                                  - interest-only payments may be permitted for the first three years.
                                  - In first 6 months after closing $250,000 or greater of loan funds must be used.

**What is the maximum loan amount available to ultimate recipients?**
                                  - The maximum loan amount to an ultimate recipient is the lesser of $400,000 or 50% of the loan to an intermediary lender.

**What are the rates, terms and payment structure on the loan to the ultimate recipient?**

**How may funds be used?**
                                  - Promote community development
                                  - Establish a new business
                                  - Establish and support microlending programs.
                                  - Create or retain employment opportunities.
                                  - To acquire, construct, convert, enlarge or repair a business or business facility, particularly when jobs will be created or retained.
                                  - To purchase or develop land (easements, rights of way, buildings, facilities, leases, materials).
                                  - To purchase equipment, machinery or supplies, or make leasehold improvements.
                                  - For start-up costs and working capital.
                                  - For pollution control and abatement.
                                  - For transportation services.
                                  - To cover feasibility studies
                                  - Professional fees, ie, architects, lawyers, engineers, accountants.
                                  - Towards the building of hotels, motels, convention centers.
                                  - For educational institutions.
                                  -  For aquaculture-based rural small business.
                                  - To establish revolving lines of credit as described in  7 CFR Part 4274.314 .

**NOTE:**7 CFR Part 4274.319

**How can my organization become an intermediary lender?**

local office

**What is an eligible area?**
                                  - Any area, including a city or town, that has a population of fewer than 50,000 residents.
                                  - Any urbanized areas contiguous and adjacent to a city or town of 50,000 or more residents may not be eligible.
                                  - The intermediary borrower’s headquarters may be based within a larger city so long as the project service area is located in an eligible rural area.
                                  - The intermediary lender may be located anywhere.

Check eligible addresses for Business Programs

**How do we get started?**

state office

**Who can answer questions?**

local office

**What law governs this program?**
                                  - The Basic Program is governed by the Code of Federal Regulations,  7 CFR Part 4274 .
                                  - The Loan Servicing is governed by  7 CFR Part 1951 .
                                  - This program was originally authorized by the Food Security Act of 1985, Pub L. 99-198 (1985 Farm Bill).

**Why does USDA Rural Development do this?**

**NOTE:**local office

##             To Apply          

**IRP Intermediary Application Checklist & File Docket Index**

RD IRP Application Checklist

RD 4274-1, **Application for Loan****IRP**,

RD4274-2,**IRP Project Summary**, 

**Environmental Checklist for Categorical Exclusions,**

RD 1970-B, Exhibit D

RD 1970-A, Exhibit H

**Survey on Ensuring Equal Opportunity for Applicants**

**Forms:**RD 400-4, Assurance Agreement

RD Inst.1940-Q Exh A-1. Certification for Contracts, Grants & Loans

RD 1910-11, Federal Collection Policies

RD 1940-L, Certification for Request of Funds

**NOTE:** If state-specific forms are not shown above, please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a **Business Programs Specialist** before attempting to fill out any forms or applications. This will save you valuable time in your application.

**Interest Rates:**
For intermediaries, the interest rate is fixed at 1% with a maximum term of 30 years. Interest-only payments may be permitted for the first 3 years.

For the ultimate recipients, the interest rate is set by the intermediary in an amount sufficient to cover the cost of operating and sustaining the revolving loan fund.

##             Other Requirements          

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

##             Contact          

Please select your state in the dropdown menu above to find your local contact for this program.

##             Events          

There are currently no events scheduled.