§1936b Intermediary relending program

Summary

The Secretary can make or guarantee loans to public agencies, Indian tribes, cooperatives, and nonprofit corporations so those groups can relend money to people and businesses. The relended money must mostly help rural communities and, as the Secretary decides, support community development, start new businesses, fund microlending programs, or create or keep jobs. A final borrower’s total loan (including any existing balance) cannot be more than $400,000 or more than 50 percent of the loan made to the eligible lender, whichever is less. Eligible lenders must apply. The Secretary will look at past performance and may lower required equity for groups that did well. Lenders must show a governing or advisory board with local business and community leaders. The Secretary will set a schedule to return any equity if the lender is current on payments and follows loan rules. The Secretary must make rules to reduce paperwork and to carry out the 2018 changes. The Secretary cannot make loans under section 9812(a) of title 42. Up to $25,000,000 is authorized each year for fiscal years 2014 through 2023.