Intermediary Relending Program
The Intermediary Relending Program is a U.S. Department of Agriculture program designed to stimulate the economy and job growth. Under the IRP program, loans are provided to local organizations (intermediaries) for the establishment of revolving loan funds. These revolving loan funds are used to assist with financing business and economic development activity to create or retain jobs in disadvantaged and remote communities.
The Front Royal-Warren County Industrial Development Authority (dba Economic Development Authority) is a USDA approved “Intermediary,” and provides low-interest loans to qualifying businesses.
Who can apply for loan funds from the intermediaries?
The following entities are generally eligible to apply for loans from intermediary lenders provided they owe no delinquent debt to the Federal Government:
- Individual citizens or individuals who have been legally admitted to the U.S.,
- Those located in a rural area defined as an area with a population of 25,000 or less,
- An entity that is able to incur debt, give security, and repay the loan,
- A corporation, partnership, LLC, individual, non-profit corporation, public body.
What types of projects are eligible?
IRP funding may be used for a number of purposes but to be eligible, ultimate recipients must be located in a rural area. Under the IRP, a rural area is any area that is not inside a city with a population of 25,000 or more according to the latest decennial census. Some examples of eligible projects are:
- The acquisition, construction, conversion, enlargement, or repair of a business or business facility, particularly when jobs will be created or retained.
- The purchase or development of land (easements, rights of way, buildings, facilities, leases, materials)
- To purchase equipment, leasehold improvements, machinery, supplies
- Start up costs and working capital
- Pollution control and abatement
- Transportation Services
- Feasibility studies
- Hotels, motels, B&Bs, convention centers
For more information, contact Jennifer R. McDonald, Executive Director, Front Royal-Warren County Economic Development Authority, (540) 635-2182 or email@example.com.