U.S. Department of Agriculture (USDA) Under Secretary for Rural Development Xochitl Torres Small today announced that the Department is increasing the maximum loan amount to $400,000 under the Intermediary Relending Program. This change is in accordance with provisions in the Agriculture Improvement Act of 2018 (2018 Farm Bill).
USDA is offering priority points to projects that advance key priorities under the Biden-Harris Administration to help communities recover from the COVID-19 pandemic, advance equity and combat climate change. These extra points will increase the likelihood of funding for projects seeking to address these critical challenges in rural America.
The Intermediary Relending Program provides low-interest loans to local lenders, known as intermediaries, that re-lend the funds to businesses to advance equity in rural America by creating new opportunities in distressed communities.
In a final rule published today, USDA increased the maximum loan amount to $400,000 for projects financed under the program. The new funding limit can increase an intermediary’s impact in the communities they are serving. Additionally, rural businesses can use these loans to pay off existing debt. USDA also is expanding the ability for intermediaries to request a partial or full return on equity contributions for loans made through the program.
For additional information, see page 72151 of the Dec. 21, 2021, Federal Register.
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