USDA opens call for loans under Intermediary Relending Program
The US Department of Agriculture announced it is accepting applications for loans to support economic development and create jobs for people in rural areas, under the Intermediary Relending Program.
The initiative provides a low-interest loan to local lenders or “intermediaries” that re-lend the funds to businesses to improve economic conditions and create jobs in rural communities. Eligible intermediary lenders include nonprofit corporations, cooperatives, and public agencies.
USDA is offering priority points to projects that advance key priorities under the Biden-Harris administration to help communities recover from the COVID-19 pandemic, advance equity, and combat climate change.
“The extra points will increase the likelihood of funding for projects seeking to address these critical challenges in rural America,” the agency confirmed.
The loans from an intermediary to an ultimate recipient business may be used to:
- acquire, build, convert, expand, or repair a business or business facility;
- purchase or develop land;
- purchase equipment, machinery, or supplies, or make leasehold improvements;
- support start-up costs and working capital;
- control and abate pollution; and,
- support transportation services.
Competitions for the fiscal year 2022 available funds are conducted quarterly for applications submitted to the nearest USDA Rural Development office no later than 4:30 p.m. (local time) by the following deadlines: Dec. 31, 2021, March 31, 2022, and June 30, 2022
Eligible applications that are not funded in the quarter received will automatically compete for funding in up to three additional quarters, the federal agency explained.