Intermediary Relending Program (IRP)

Rural Development state office contacts

The Intermediary Relending Program (IRP) provides loans to intermediaries for the establishment of revolving loan funds in rural areas. These revolving loan funds are used to assist with financing business and economic development activities to create or retain jobs in disadvantaged and remote communities.

Funds may be used for acquisition, construction, rehabilitation, and working capital for healthcare facilities and transportation services if jobs will be created or retained. A list of eligible uses of funds is provided on the program website. Lenders are encouraged to align their programs with state and regional development strategies and collaborate with other public and private organizations that can provide complementary resources.

Fact sheet

Eligible intermediary lenders include:

• Nonprofits and cooperatives
• Federally-recognized tribes
• Public agencies

Intermediaries must have:

1. The legal authority to operate a revolving loan fund
2. A record of successfully assisting rural businesses and communities
3. The ability to provide adequate assurance of repayment of the loan

Additional requirements for intermediaries are listed on the program website.

An intermediary may borrow up to $1 million. Total aggregate debt may not exceed $15 million.

The maximum loan amount available to ultimate recipients is $400,000 or 50% of the total project cost, whichever is less.

For intermediaries, the interest rate is fixed at 1% with a maximum term of 30 years. Interest-only payments may be permitted for the first 3 years. For the ultimate recipients, the interest rate is set by the intermediary in an amount sufficient to cover the cost of operating and sustaining the revolving loan fund.

Choose the appropriate state in the drop down menu on the top left of the program website. This will open the state specific page. Tabs at the top of the page will show general program information, forms and resources, and state specific contact information.

To begin the application process, contact a Rural Development program specialist in the state or territory where the revolving loan fund would be available. A program specialist will assist with beginning the application process.