Intermediary Relending Program

To finance business facilities and community development.

Related Programs

Examples of Funded Projects

(1) $750,000 loan to a nonprofit corporation to relend to businesses within a State; (2) $750,000 loan to a nonprofit corporation to relend to businesses within 10 counties in one State; (3) $600,000 loan to a nonprofit corporation serving an six-county area for relending to businesses; and (4) $500,000 loan to a Native American community development corporation to relend to new and expanding businesses.

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - RBS State Office listed in Appendix IV of the Catalog.

Program Accomplishments

In fiscal year 2008, 101 applications were received and 53 were approved. It is anticipated that in fiscal year 2009, 105 applications will be received including 20 carried over from fiscal year 2008 and 57 loans will be approved. Considering the estimated funding level for fiscal year 2009, funding activity is anticipated to be similar to fiscal year 2008.

Uses and Use Restrictions

An entity that receives an Intermediary Relending Program (IRP) loan from the Rural Business-Cooperative Service (RBS) is referred to as an intermediary.

Intermediaries must relend all of the loan funds received from the IRP loan for business facilities or community development in rural areas.

An entity that receives a loan from an intermediary is referred to as an ultimate recipient.

The maximum loan to any one intermediary is $2 million.

The maximum term is 30 years and the interest rate is one percent per annum.

Intermediaries may not use IRP funds to finance more than 75 percent of the cost of an ultimate recipient's project or for a loan of more than $250,000 to one ultimate recipient.

(No more than 25 percent of an IRP loan approved may be used for loans to ultimate recipients that exceed $150,000.)

Eligibility Requirements

Applicant Eligibility

Eligible intermediaries may include: Private nonprofit organizations, State or local governments, and Federally recognized Indian tribes and cooperatives.

Beneficiary Eligibility

Ultimate recipients may include: For profit organizations, individuals, public and private nonprofit organizations.


Intermediaries must have adequate legal authority and a proven record of successfully assisting rural businesses and industries. Ultimate recipients must not be located within a city with a population of 25,000 or more. Both intermediaries and ultimate recipients must be unable to obtain the loan at reasonable rates and terms through commercial credit or other Federal, State, or local programs. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

This program is excluded from coverage under OMB Circular No.


This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

An environmental impact assessment is required for this program.

Application Procedures

Potential intermediaries should file applications with the State office for the State in which the intermediary's headquarters is located. The application package includes Form 4274-1 and a written work plan. More details are available in 7 CFR 4274.343, or from the appropriate Rural Development State Office. The Rural Development administers the program on the local level. Intermediaries develop their own application procedures for ultimate recipients.

Award Procedures

The application of each intermediary will be evaluated by the RD State Office. Applications received by RBS will be reviewed and ranked quarterly and funded in the order of priority ranking.




Health and Human Services Act of 1986, Section 407, Public Law 99-425, 7 U.S.C. 1932 note; Food Security Act of 1985, Section 1323, as amended, Public Law 99-198, 7 U.S.C. 1631; Community Economic Development Act of 1981, Section 623, as amended, Public Law 97-35, 42 U.S.C. 9812.

Range of Approval/Disapproval Time

From 30 to 60 days.


Adverse actions by RBS in connection with this program may be appealed by contacting the Area Supervisor of the USDA National Appeals Division. Appeals will be handled in accordance with 7 CFR 1900-B.


Not applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula or specific matching requirements, but RBS funds loaned to one ultimate recipient by an intermediary must not exceed 75 percent of the cost of the ultimate recipient's project.

Length and Time Phasing of Assistance

Applicant intermediaries must show a need for the funds and limit the request to an amount they can expect to use within one year. After a loan is approved, the funds are released to the intermediary in multiple advances as required to fund loans to ultimate recipients.

Post Assistance Requirements


Intermediaries must submit quarterly reports on lending activity, income and expenses, financial condition and progress, and an annual budget.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.


Records and accounts must be maintained to reflect the operations of each project.

Financial Information

Account Identification

12-4233-0-3-452; 12-2069-0-1-452.


(Loans) FY 07 $33,869,875; FY 08 est $33,772,000; and FY 09 est not reported.

Range and Average of Financial Assistance

$150,000 to $1,000,000. Average: $632,755.

Regulations, Guidelines, and Literature

7 CFR 4274, Subpart D; 7 CFR 1951, Subpart R.

Information Contacts

Regional or Local Office

RBS State Office listed in Appendix IV of the Catalog.

Headquarters Office

Rural Business-Cooperative Service, Room 6867, Stop 3225, South Agriculture Building, Washington, DC 20250-3225. Telephone: (202) 690-4100. FTS is not available.

Criteria for Selecting Proposals

Factors considered in judging applications include: Financial condition, assurance of repayment ability, equity, collateral, experience and record of managing a loan program or providing other assistance to rural businesses, ability to leverage with funds from other sources, extent assistance would flow to low income persons.

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