The Intermediary Relending Program is a source of partial business financing for land, buildings, machinery and equipment, and working capital.
The Intermediary Relending Program was started in 1992 with funds from the federal office of Rural Development (formerly Farmers Home Administration). These funds have been used by many businesses in the region. The purpose of the program is to promote economic development in non-metropolitan areas.
IRP funds from $50,000 to $250,000 are available to small businesses located in Chester, Clarendon, Kershaw, Lee, Lancaster, Sumter, Union, and York counties. These funds can be used in conjunction with bank financing to fund up to 75% of eligible project costs. A competitive interest rate and negotiable term can significantly lower overall debt service providing improved cash flow for the business.
The application process includes submitting projections, business financials, personal financial statements, and an outline of project costs. Business Plans are required for start-up companies. Cash flow, credit history, and collateral will be considered in the loan review process.
IRP funds combined with bank financing can be a powerful economic development tool. These funds are available to new and expanding businesses for the purpose of stimulating development in rural areas and creating jobs.
Industrial, commercial, service, and retail companies are eligible for IRP funds. These funds can be used for fixed assets and working capital. In some instances, debt refinancing can be considered. Owner equity injection is required.
- Loan Amounts – $50,000-$250,000
- Interest Rate – Fixed
- Term – Negotiable
- Maximum Loan Amount – 75% of Total Project Costs
- Origination Fee – 1.5%
- Legal Fees – Varies
- Prepayment Penalty – Up to 1.5%
Job Creation – The goal of the IRP loan program is to create one job for every $25,000 of IRP funds loaned.
Uses For Loan Funds – Land, Building Construction, Building Expansion, Machinery, Equipment, and Working Capital.
For additional information on the Intermediary Relending Program, please contact Randy Pellisero at 803-327-9041.
Link to Loan Application