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  • Writer's pictureTom Kenny

USDA Seeks Applications for Intermediary Relending Loan Program (Economic Development)


The purpose of the Intermediary Relending Program is to alleviate poverty and increase economic activity and employment in rural communities. Under this program, loans are provided to local organizations (intermediaries) for the establishment of revolving loan funds. These revolving loan funds are used to help finance business and economic development activity to create or retain jobs in disadvantaged and remote communities.

Intermediary lenders are encouraged to complement state and regional strategies, and work with other public and private organizations that can provide complementary resources.

This program provides 1 percent low-interest loans to local lenders or “intermediaries” that re-lend to businesses to improve economic conditions and create jobs in rural communities.


The following are eligible as intermediary lenders:

  • Nonprofits and cooperatives.

  • Federally-recognized tribes.

  • Public agencies.

The following are eligible to apply for a loan from the intermediary lender as an ultimate recipient:

  • Ultimate recipients may be individuals, public or private organizations or other legal entities, given that:

    • Majority ownership is held by U.S. citizens or permanent residents. (1)

    • The applicant owes no delinquent debt to the Federal Government.

    • The applicant is unable to obtain affordable commercial financing for the project elsewhere.

    • The project is located in an eligible rural area - Check Eligibility.

    • The applicant has no legal or financial interest or influence in the work of the intermediary lender.

What is an eligible area?

  • Any area, including a city or town, that has a population of fewer than 50,000 residents.

  • Any urbanized areas contiguous and adjacent to a city or town of 50,000 or more residents may not be eligible.

  • The intermediary borrower’s headquarters may be based within a larger city so long as the project service area is located in an eligible rural area.

  • The intermediary lender may be located anywhere.

Award Details:

Maximum Loan Available: $250k or 75% of the total cost of the ultimate recipient's project which the loan is being made, whichever is less.

Interest rate is fixed at 1%

Maximum term is 30 years

Interest-only payments may be permitted for the first three years

Use of funds:

To acquire, construct, convert, enlarge or repair a business or business facility, particularly when jobs will be created or retained.

  • To purchase or develop land (easements, rights of way, buildings, facilities, leases, materials).

  • To purchase equipment, machinery or supplies, or make leasehold improvements.

  • For start-up costs and working capital.

  • For pollution control and abatement.

  • For transportation services.

  • To cover feasibility studies and some fees.

  • Towards the building of hotels, motels, convention centers.

  • For educational institutions.

  • For aquaculture-based rural small business.

  • To establish revolving lines of credit as described in 7 CFR Part 4274.314.

Grant Management Associates has years of experience assisting our clients with funding opportunities like this one. Contact us for a consultation.

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