Full Version of Site

Rural Business and Cooperative Service Home Page     Rural Business Enterprise Grants                         Rural Business Opportunity Grants      CAIP  
Intermediary Relending Program                                        Guaranteed B&I Loans           Rural Economic Development  Loans & Grants     Export-Import Bank
 Co-op Programs         Rural Cooperative Development Grant              Cooperative Stock Purchase           Value Added Development Grant
RBS In The News       Accomplishments - 2002               Accomplishments - 2001        Accomplishments - 2000           Accomplishments - 1999
On-Line Forms            RBS Civil Rights                             

Home Page                  Community Programs                  Single Family Housing            Multi Family Housing               Other Information

Description:

The purpose of the Intermediary Relending Program (IRP) is to finance business facilities and community development projects in rural areas. This is achieved through loans made by the agency to intermediaries. The intermediary relends the funds to an ultimate recipient for business facilities or community development projects. A revolving loan fund is established, so that collections made by the intermediary on their ultimate recipient loans (that amount in excess of necessary operating expenses and debt payments) can be used for more loans to other recipients. 

Loan Purposes:

All of the IRP loan funds received by an intermediary must be reloaned to ultimate recipients. Interest income and allowable fees may be used for administrative costs, technical assistance to borrowers, or debt retirement. All collections from the operation of the IRP revolving loan fund that are not used for the above authorized expenses, must be made available for relending to eligible ultimate recipients. 

Loans from intermediaries to ultimate recipients must be for the establishment of new businesses, expansion of existing businesses, creation of employment opportunities, the saving of existing jobs, or community development projects. 

Loan Terms

Loans to intermediaries are scheduled for repayment over a period of up to 30 years. The term of the loan from the intermediary to the ultimate recipient is set by the intermediary.  The interest rate on loans to intermediaries is one percent (1%) per annum. The interest rate to the recipient is set by the intermediary.  All loans to intermediaries must be adequately secured.  Intermediaries are required to provide written collateral policies for loans to recipients. 

Who Is Eligible?

Intermediaries may be private nonprofit corporations, public agencies, Indian groups, or cooperatives. 
Intermediaries must: 

    - Be bonded.
    - Have legal authority to carry out the proposed loan purposes and to incur and repay the debt.
    - Have a record of successfully assisting rural business and industry, normally including experience in making and servicing commercial loans.
    - Provide adequate assurance of repayment.

Any type of legal entity, including individuals and public and private organizations, may be an ultimate recipient. 


Other Criteria:

Loans made by the intermediaries to ultimate recipients from the revolving loan fund must not exceed the lesser of $250,000 or 75% of the total cost of the ultimate recipient's project. However, no more than 25 percent of the IRP approved loan amount may be used for ultimate recipient loans of over $150,000. 

An ultimate recipient cannot be located in a city with a population of 25,000 or more. 

Unless an exception is approved, the intermediary must have a proven record of successfully assisting rural businesses and community development projects of the type planned, normally including recent experience in loan making and servicing of commercial loans with a delinquency/loss rate acceptable to the Agency. 

FY 2007 Allocation

Funding for this year has not been set at this time.

Funding for FY '07 was set at $33,869,875.19 . 

Funds are not distributed to States. All funds are retained in the National Office. All funds are approved for projects on a 
competitive basis that best meet the Agencies priorities and according to funds availability at the time of the request. 

Loan Amount:

Subject to certain conditions, intermediaries may receive initial loans of up to $750,000 and subsequent loans of up to $750,000 
per year to a total of up to $15 million. 

Application Deadlines

Applications for National Office reserve funding must be submitted to the State Office by the following dates:

2nd quarter - January 31, 2007
3rd quarter - March 30, 2007
4th quarter - June 29, 2007
1st quarter (FY '08) - September 28, 2007

Loan Maturity

No loan to an intermediary shall be extended for a period exceeding 30 years. Interest and principal payments will be scheduled at least annually. The initial principal payment may be deferred (during the period before the facility becomes income producing) by the Agency, but not more than 3 years. 

Timeframes for Turnaround

Applications received by the Agency will be reviewed and ranked quarterly and funded in order of priority ranking. The Agency will retain unsuccessful applications for consideration in subsequent reviews, through a total of four quarterly reviews.


Where Do You Apply?

Individuals may contact their local Rural Development Area Office for application information.

IRP Lenders
To see a list of IRP Approved Lenders in Georgia, click here.              

Last Updated : August 15, 2007