The purpose of the Intermediary Relending Program (IRP) is to finance business facilities and community development projects in rural communities with a population of 50,000 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 and San Luis Obispo Counties are eligible for this program. Loans may range from $10,000 to $250,000.
How an IRP loan may be used:
- GAP financing needs
- Working capital, machinery & equipment
- Real estate purchase
- Terms up to 20 years
Rates & 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
For more information or to apply, contact Lisa Hollingshead by phone at (559) 688-6666. For her email address see the staff directory page.
Southland EDC is and equal opportunity provider and this loan program is offered in cooperation with the USDA Rural Development. To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found at http://www.usda.gov/oascr/filing-program-discrimination-compliant-usda-customer.