PROGRAM DESCRIPTION: Intermediaries (or borrowers) are private nonprofit corporations, any state or local government, Indian tribe, or a cooperative. Intermediary Relending Program money is lent to them, which in turn is re-lent by them to ultimate recipients. The ultimate recipient must not be able to obtain credit elsewhere.
TYPE OF ASSISTANCE: To finance business facilities and community development projects in rural areas, innovative projects, land, building construction or repair, equipment, working capital, interest feasibility studies, and professional services.
ELIGIBILITY REQUIREMENTS: Service area must be under 25,000 in population.
FUND AVAILABILITY AND MAXIMUM AMOUNTS: Maximum Rural Development funding for 2012 will be $400,000 per intermediary. Maximum loan to ultimate recipient is $150,000.
State Offices will
fund projects based on quarterly funding dates of September 30, December 31,
March 31 and June 30.
INTEREST RATE: The interest rate to an intermediary is 1%. Rates to ultimate recipients will be negotiated, with lower rates encouraged.
TERMS AND COLLATERAL: The maximum term is 30 years. Collateral can be real or personal property or pledged securities of intermediary or ultimate recipient.
CONTACT: The program is administered by the Rural Business-Cooperative Service, USDA, Washington, D.C. 20250. However, applications are made at the Rural Development State Office.
For assistance, please contact Lisa Talley, Business Programs Specialist (IRP). Ms.Talley can be reached at 919-873-2068 or email:email@example.com.
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