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Intermediary Relending Program (IRP)

The Intermediary Relending Program (IRP) consists of loans made by USDA Rural Development to intermediaries (public bodies, not for profit entities or Indian tribes) at 1 percent interest for 30 years. Intermediaries maximum loan is $250,000 or 75 percent of project cost, whichever is less. Intermediaries establish revolving loan fund accounts and then re-lend to individuals or public or private organizations to finance business enterprises or community development. Limited to communities of 25,000 population or less.

Loans for ultimate recipients must be used for community development projects, the establishment of new businesses and/or expansion of existing business, the creation of new jobs or saving existing jobs. Loan funds typically are 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; and
aquaculture including conservation, development and utilization of water for aquaculture.

Intermediaries may not use the IRP to cover the intermediaries 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; for 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 percent or more) ownership in ultimate recipient; or to finance more than 75 percent of total cost of project. Loan to ultimate recipient plus outstanding balance of any existing IRP loan can not exceed $250,000.

For more information about the program, please contact the  USDA Rural Development Area Office nearest you. 
 

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USDA Rural Development is an Equal Opportunity Lender, Provider and Employer.

Complaints of Discrimination should be sent to:

USDA, Director, Office of Civil Rights, Washington D.C. 20250-9410

EEO/CR Statement

 Last modified: February 16, 2006