Your browser isn't running scripts. There are scripts on this page that perform mouse-over effects to emphasize the selection of text graphics from the navigation bar. The mouse-overs turn the graphics from navy blue to bright green. However, the page also contains text descriptions of these menu items.
Skip navigation barsU S D A and Rural Development Logos            Committed to the future of rural communities    

Missouri

factsheetgraphic.gif - 2147 Bytes

INTERMEDIARY RELENDING PROGRAM

RD Instruction 4274-D
PURPOSE: Finance business facilities and community development projects in rural areas - loans are made to intermediaries who establish a revolving loan fund.

Intermediaries lend these funds to ultimate recipients for business facilities or community development. As the ultimate recipient loans are repaid, the amount of collections in excess of necessary operating expenses and debt repayment are put back into the revolving loan fund and are used for more loans to more ultimate recipients.
Eligibility
Requirements
Eligible
Loan Purposes
Ineligible
Loan Purposes
Terms
Interest Rate
Security
Required
Application
ELIGIBILITY
REQUIREMENTS:		 Intermediary:
  • Private nonprofit corporations
  • Public agencies
  • Indian groups (Federally recognized)
  • Cooperatives
  • Intermediaries must:
    • Have legal authority to carry out the proposed loan purposes and to incur and repay the debt
    • Have a successful record of assisting rural business and industry including experience in making and servicing commercial loans
    • Provide adequate assurance of repayment
    • At least 51% of owners/members be U.S. citizens or admitted for permanent residence
    • Be unable to obtain the proposed loan elsewhere at reasonable rates and terms
Ultimate Recipients
  • Private corporations
  • Public organizations
  • Individuals
    • At least 51% of owners/members be U.S. citizens or admitted for permanent residence
    • Be unable to obtain the proposed loan elsewhere at reasonable rates and terms
ELIGIBLE
LOAN PURPOSES:		 Intermediary:
  • Provide loans to ultimate recipients.
Ultimate Recipients:
  • Must be used for:
    • Community development projects
    • Establishment of new businesses and/or expansion of existing business
    • Creation of new jobs and/or save existing jobs
  • Ultimate recipients must:
    • Meet the objective and purpose of the program
    • Use labor of low-income persons when possible
  • Loan funds may be used for:
    • Business acquisitions, construction, conversion, enlargement, repair, modernization or development costs
    • Purchasing and development of land, easements, rights-of-way, building, facilities, leases or materials
    • Pollution control and abatement.
    • Transportation services
    • Startup operating costs and working capital
    • Interest
    • Feasibility study
    • Specified reasonable fees and charges
    • Aquaculture including conservation, development and utilization of water for aquaculture
INELIGIBLE
LOAN
PURPOSES:		 Intermediary:

Loans may not be used for or made to:
  • Intermediary's own administrative costs
  • Purchase goods or services or render assistance in excess of what is needed to accomplish the purpose of the ultimate recipient project
  • Distribution or payment to owner, partner, shareholder or beneficiaries of ultimate recipient or family when portion of equity will be retained
  • Charitable and educational institutions, churches and affiliated organization, and fraternal organizations
  • Government employees, military personnel or principals/employees of the intermediary who are directors, officers or have major (20% or more) ownership in ultimate recipient
  • Relending in community of 25,000 or more population
  • Finance more than 75% of total cost of project
  • Loan to ultimate recipient plus out-standing balance of any existing IRP loan can not exceed $250,000
Ultimate Recipient:

May not use assistance for:
  • Agriculture production and harvesting except as noted in procedure
  • Transfer of ownership unless loan will keep business from closing, prevent loss of jobs or expand job opportunities
  • Community antenna television services or facilities
  • Legitimate business activity when more than 10% of annual gross revenue is derived from legalized gambling activity
  • Any illegal activity
  • Otherwise eligible project that is in violation of a Federal, State or local environmental protection law or regulation or enforceable land use restriction unless loan will result in curing or removing the violation
TERMS: Intermediary:
  • 30-year repayment
  • Payments due at least annually
Ultimate Recipients:
  • Terms of loans to ultimate recipients are set by the intermediary as agreed to by USDA Rural Development
INTEREST RATE: Intermediary:
  • 1% per annum
Ultimate Recipients:
  • Negotiated between the intermediary and the ultimate recipient. Intermediaries should provide lowest possible rate
Security
Required:		 Loans to Intermediaries are collaterized and may include:
  • Realty, personal or intangibles capable of being mortgaged, pledged or otherwise encumbered by an intermediary or ultimate recipient in favor of USDA Rural Development
  • Lien on the IRP revolving fund
  • Assignment of note(s) and security pledged by ultimate recipients Loans to ultimate recipients<
Loans to Ultimate Recipients:
  • Security requirements will be negotiated between the intermediary and the ultimate recipient and must be approved by USDA Rural Development /b>
Application: Form 4271-01, Application for Loan (Intermediary Relending Program).  Documentation of Intermediary's proposed revolving loan fund work plan.


Please send any comments or suggestions to:  Webmaster
 

We are currently encountering some email problems.  If your email message is returned as undeliverable, please call 573-876-0989 for additional assistance.  We apologize for any inconvenience. 

 

Revised on:   April 9, 2008


Home