§1936b Intermediary Relending Program

Summary

The Secretary may make or guarantee loans to certain groups so those groups can lend money to people and businesses for rural projects. Eligible groups are public agencies, Indian tribes, cooperatives, and nonprofit corporations. Loans made through this program must mostly help rural communities and, as the Secretary decides, support community development, start businesses, back microlending programs, or create or keep jobs. The Secretary may not use this program to make loans under section 9812(a) of title 42. Any loan to a person or business for a project cannot be more than $400,000 or more than 50% of the loan made to the eligible group, whichever is less. To get a loan or guarantee, an eligible group must apply with the information the Secretary asks for. The Secretary will look at past performance. If a group did well before, it may need to put in less equity later. The group must show it has a governing or advisory board made up of local business, civic, and community leaders from its service area. The Secretary will set a schedule to return any equity contributions that matches the loan repayment plans, as long as the group is current on payments and follows loan rules. The Secretary must create rules to reduce paperwork and carry out changes from the Agriculture Improvement Act of 2018. Up to $25,000,000 is authorized for each fiscal year 2014 through 2023 to run the program.