§1936b Intermediary Relending Program

Summary

The Secretary can make or guarantee loans to certain local groups so those groups can lend money to people and projects in rural areas. Eligible groups are public agencies, Indian tribes, cooperatives, and nonprofit corporations. The money can be used mostly in rural communities to help with community development, start new businesses, support microlending, or create and keep jobs. A borrower’s loan for a project cannot be more than $400,000 or more than 50 percent of the loan made to the eligible group. The Secretary must not make loans under section 9812(a) of title 42. Eligible groups must apply with the information the Secretary asks for. The Secretary will look at past performance, may let good performers put up less equity later, and will require a governing or advisory board that represents the service area. The Secretary will set a schedule to return any equity if the group is current on payments and follows loan rules, and will create rules to reduce paperwork and carry out the 2018 changes. There is authorization of $25,000,000 for each of fiscal years 2014 through 2023.