Washington, D.C., Apr 08, 2013 -- Agriculture Secretary Tom Vilsack announced today that applications are being accepted from qualified non-profit and public organizations (intermediaries) to provide loans to support rural businesses and community development groups. Funding, which is intended to spark business expansion and create jobs will be made available through USDA’s Intermediary Relending Program (IRP). The United States Department of Agriculture (USDA) remains focused on carrying out its mission, despite a time of significant budget uncertainty. Today's announcement is one part of the Department's efforts to strengthen the rural economy.
“This program is a part of the Obama Administration’s ongoing effort to leverage private investments with public funds to create jobs and expand economic opportunity for rural entrepreneurs,” Vilsack said. “Intermediaries serve as a critical component to boosting local economies.”
The Intermediary Relending Program is USDA Rural Development's primary program for capitalizing revolving loan funds. USDA lends money to economic development intermediaries (nonprofits and public bodies) who in turn re-lend the funds as commercial loans to rural businesses (ultimate recipients) that might not otherwise be able to obtain such financing. The repayment of the ultimate recipients’ loans allows the intermediary to continue to make more loans to new recipients, supporting sustainable economic development. Since President Obama took office, the program has created or saved an estimated 20,000 jobs.
Funds are used to assist with financing business and economic development activity to create or retain jobs in disadvantaged and remote communities. Intermediaries are encouraged to work with state and regional representatives and in partnership with other public and private organizations that can provide complimentary resources.
For more information about the Intermediary Relending Program, and to learn about application deadlines, visit our website. For information on how to apply, see page 20883 of the April 8, 2013 Federal Register. Applications and forms may be obtained from any Rural Development State Office.
USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration – the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $700 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.