Intermediary Relending Program in Illinois

• Nonprofits and cooperatives.
• Federally-recognized tribes.
• Public agencies.

• 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.

• The legal authority to operate a Revolving Loan Fund (RLF) (2).
• A record of successfully assisting rural businesses and communities, normally including experience making and servicing commercial loans.
• The ability to provide adequate assurance of repayment of the loan.

• Up to $2 million for the first financing.
• Up to $1 million at a time thereafter.
• Total aggregate debt from all funding may not exceed $15 million.

• The interest rate is fixed at 1 percent.
• The maximum term is 30 years.
• interest-only payments may be permitted for the first three years.

• $250,000 or 75 percent of the total cost of the ultimate recipient’s project for which the loan is being made, whichever is less.

Portfolio: No more than 25 percent of an Intermediary Relending Program loan may be used for loans to ultimate recipients that exceed $150,000. This limit does not apply to revolved 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.

• 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.

• The Basic Program is governed by the Code of Federal Regulations, 7 CFR Part 4274.
• The Loan Servicing is governed by 7 CFR Part 1951.
• This program was originally authorized by the Food Security Act of 1985, Pub L. 99-198 (1985 Farm Bill).