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

An ultimate recipient borrower may borrow up to $250,000.

How May Funds Be Used?

Loans from intermediaries to ultimate recipients must be for the establishment of new businesses, the expansion of the existing businesses, creation of employment opportunities, saving of existing jobs, or community development projects. Eligible loan purposes are expanded to include debt refinancing and revolving lines of credit (under certain conditions), management consultant fees, educational institutions, commercial fishing, commercial plant nurseries, motels, hotels, and other tourist and recreational facilities except golf courses, race tracks, or gambling facilities. Eligible areas include Rural areas not within the outer boundary of any city having a population of 25,000 or more.

At least 51 percent of the owners or members of both intermediaries and ultimate recipients must be United States citizens or admitted for permanent residence. Both intermediaries and ultimate recipients must:

1. Be unable to obtain the proposed loan elsewhere at reasonable rates and terms, and

2. Must not have any outstanding delinquent debt to the Federal Government. Intermediary applicants and ultimate recipient projects are subject to intergovernmental and environmental reviews, equal opportunity and nondiscrimination requirements, and seismic safety if new building construction is involved.

For more information, please contact Brian Scales, 978-630-6649, Email: bscales@rcapsolutions.org