USDA Intermediary Relending Program (IRP)

The following general information is provided to give a better understanding of the USDA Intermediary Relending Program. This information is general and each loan application is reviewed individually by the Small Business Assistance Corporation (SBAC).

USE OF PROCEEDS

Funds can be used for:

  • Business acquisition
  • Business construction
  • Leasehold improvements
  • Working capital
  • Furniture and fixture
  • Purchase of inventory, supplies, machinery, and equipment

MAXIMUM AMOUNT

  • The maximum loan amount is $150,000 – funds must be blended.

RATES/TERMS

  • The rate is set at Prime + 2% APR with a floor of 6%
  • Terms: Up to seven (7) years on non-fixed assets and up to 15 years on fixed assets
  • Origination fee 1.5%

COLLATERAL

Collateral (or security) will be determined on a case by case basis. However potential borrowers should know that the SBAC is legally bound by the USDA to secure each loan with sufficient collateral. If you purchase an asset, a first lien will be obtained. For all loans, the personal guarantees of the principal owners of the small business concern will be required.

PROJECT ELIGIBILITY

Loans from the intermediary to the ultimate recipient using the IRP revolving fund must be for community development projects, the establishment of new businesses, expansion of existing businesses, creation of employment opportunities, or saving existing jobs.

APPLY ONLINE

All information is subject to change without notice.