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Housing
Business and Cooperatives
Intermediary Relending Program
Provides intermediary loans to ultimate recipients for community development
projects, establishment and expansion of businesses and creation and/or saving
of jobs.
Eligibility:
- Eligible applicants include public bodies/agencies (local/state
government), non profits, Native American tribes and cooperatives.
Loan Terms and Conditions:
- USDA Rural Development makes loans to intermediaries who establish
revolving loan funds to assist small non-farm ultimate recipient businesses
who are unable to obtain adequate bank financing.
- The term of the intermediary's loan is for 30 years at a one percent
rate of interest.
- The term of the loan from intermediaries to ultimate recipients is set
by the intermediary. The interest rate is negotiated between the
intermediary and the ultimate recipient.
- Loan funds of ultimate recipients may be used to purchase real estate
and equipment, and for working capital or refinancing. Funds cannot be
used for agricultural production, golf courses, racetracks, or gambling
facilities.
- Intermediary loan funds to ultimate recipient businesses cannot be used
for more than 75 percent of the total project cost or $250,000, whichever is
less.
- Eligible areas include unincorporated rural areas, cities, and towns
with populations of 25,000 or less.
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