The purpose of the Intermediary Relending Program (IRP) is to finance business facilities and community development projects in rural communities with a population of 25,000 or less. This is achieved through loans made by the Rural Business-Cooperative Service (RBCS) to intermediaries. Intermediaries re-lend funds to ultimate recipients for business facilities or community development. Intermediaries establish revolving loan funds where the collections from loans made to ultimate recipients in excess of necessary operating expenses and debt payments will be used for more loans to ultimate recipients.
Small businesses from the rural communities of Tulare County are eligible for this program. Loans may range from $10,000 to $150,000.
How an IRP loan may be used:
- GAP financing needs
- Working capital, machinery & equipment
- Real estate purchase
- Terms up to 20 years
Rates and Terms:
- Interest rate: Fixed at prime or prime + 1 to 1.5
- Working capital: Up to 7 years
- Equipment: Up to 10 years
- Real property: Up to 20 years
- UCC filings on machinery & equipment
- A second trust deed on the business real property
- Personal guarantees of all 20% or more owners