The Intermediary Relending Program alleviates poverty and increases economic activity and employment in rural communities by providing loans to local organizations (intermediaries) for the establishment of revolving loan funds, which are used to help finance business and economic development activity to create or retain jobs in disadvantaged and remote communities.

An applicant must a nonprofit, cooperative, public agency, or federally-recognized Tribe (the “Program Applicant”).

A successful Program Applicant (which is known as an “Intermediary Lender”) may use the proceeds of its award of a 1% low-interest loan to re-lend to businesses and individuals (the “Program Borrowers”) to improve economic conditions and create jobs in rural communities.

Program Borrowers may use the relent USDA loan proceeds: (a) to acquire, construct, convert, enlarge or repair a business or business facility (particularly when jobs will be created or retained); (b) to purchase or develop land easements, rights of way, buildings, facilities, leases, and materials; (c) to purchase equipment, machinery or supplies, or make leasehold improvements; (d) for start-up costs and working capital; (e) for pollution control and abatement; (f) for transportation services; (g) for feasibility studies and certain fees; (h) for hotels, motels, and convention centers; (i) for education institutions; (j) for aquaculture-based rural small business; and (k) for certain evolving lines of credit.

However, Program Borrowers may not use the relent USDA loan proceeds: (a) for assistance in excess of what is needed to accomplish the purpose of the ultimate recipient’s project; (b) for distribution or payment to the owner, partners, shareholders, or beneficiaries of the ultimate recipient or members of their families when such persons will retain any portion of their equity in the ultimate recipient; (c) by charitable institutions, that would not have revenue from sales, fees, or stable revenue to support the operation and repay the loan, and fraternal organizations; (d) for assistance to federal government employees, active duty military personnel, employees of the intermediary, or any organization for which such persons are directors or officers or have 20% or more ownership; (e) as a loan to an ultimate recipient which has an application pending with or a loan outstanding from another intermediary involving this program’s revolving fund if the total of such loans would exceed a certain limit; (f) for agricultural production; (g) for the transfer of ownership unless the loan will keep the business from closing, or prevent the loss of employment opportunities in the area, or provide expanded job opportunities; (h) for community antenna television services or facilities; (i) for any project that is in violation of either a federal, state, or local environmental protection law or regulation or an enforceable land use restriction unless the assistance given will result in curing or removing the violation; (j) by lending and investment institutions and insurance companies; (k) for golf courses, race tracks, or gambling facilities; or (l) for any line of credit.