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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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For questions, please refer to the
"Contact
Us"
page of
this website to select the proper individual. Send comments about the format of this web site to:
mailto:philip.eggman@wa.usda.gov
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 |
