Intermediary Relending Program money is lent to private non-profit corporations, any state or local government, an Indian Tribe, or a cooperative which in turn is re-lent by the intermediary to the ultimate recipients. The ultimate recipient must be unable to obtain credit elsewhere at reasonable rates and terms.
Intermediaries (or borrowers) are private non-profit corporations, any state or local government, an Indian Tribe, or a cooperative. The service area must be under 25,000 in population.
Funding:
Maximum Rural Development funding is $2 million per intermediary. Maximum loan to any ultimate recipient is $150,000.
Terms:
Maximum term is 30 years.
Interest:
Rates to intermediaries are 1%. Rates to ultimate recipients negotiable; lower rates are encouraged.
Collateral:
Real or personal property or pledged securities of intermediary or ultimate recipient.
