Intermediary Re-lending Loan
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PROGRAM DESCRIPTION
The Intermediary Relending Program (IRP) provides for up to one-half of the financing requirements for a term of up to 20 years at a fixed interest rate. The purpose is to assist private business and industry with financing for capital improvements and expansion. The program's long-term goal is to provide stability and diversity in the economy. The short-term goal of the program is to generate immediate employment.
Target firms and industries shall include those manufacturing, trade or service sectors that encourage secondary activity elsewhere in the economy, especially those sectors which lend most to future growth. Those firms that utilize the area's natural resources and process them to final stages within the area are also targeted.
Funds and technical assistance for the IRP programs are provided, in part, through the U.S. Department of Agriculture Rural Development(USDA), Idaho Department of Commerce, Idaho Department of Employment, Economic Development Administration (EDA), Housing and Urban Development (HUD), Small Business Administration (SBA), and Department of Labor (DOL).
FINANCING TERMS
Loans from the IRP require a 15% minimum capital injection from the borrower. There usually is a 50% financing match by a bank or other lending institution. Their collateral consists of a first lien position on assets.
PAC is the subordinate lender. The interest rate is fixed at the prime rate with a floor of 5%. The minimum IRP portion is $10,000 with a maximum of $150,000. Working capital and inventory term can be up to five years, equipment term up to seven years, and real estate is 15 to 20 years.
ELIGIBILITY REQUIREMENTS
An eligible small business must be a for-profit corporation, partnership or proprietorship. The net worth of the business may not be in excess of $6,000,000 and its net profit after taxes must have averaged less than $2,000,000 during the previous two years.
The project should create/retain one full-time, permanent job or full-time equivalent, within a two year period for every $35,000 borrowed from the IRP.
ELIGIBLE PROJECTS/COSTS
INELIGIBLE PROJECTS/COSTS
COLLATERAL
Usually the mortgage or Deed of Trust on land and buildings being financed, liens on machinery, equipment and fixtures, lease assignments, and personal guarantees will serve as collateral.
FINANCING COSTS
A Processing Fee of 1.5%, Escrow Fees, Legal Fees, Title Insurance, Recording and Filing Fees, and Environmental Fees may be applicable.
PREAPPLICATION INFORMATION
Panhandle Area Council, Inc. does not discriminate by reason of race, color, religion, sex, marital status, disability, age, or national origin in services or accommodations offered or provided to our loan clients and potential loan clients. PAC is an equal opportunity provider.
The Intermediary Relending Program (IRP) provides for up to one-half of the financing requirements for a term of up to 20 years at a fixed interest rate. The purpose is to assist private business and industry with financing for capital improvements and expansion. The program's long-term goal is to provide stability and diversity in the economy. The short-term goal of the program is to generate immediate employment.
Target firms and industries shall include those manufacturing, trade or service sectors that encourage secondary activity elsewhere in the economy, especially those sectors which lend most to future growth. Those firms that utilize the area's natural resources and process them to final stages within the area are also targeted.
Funds and technical assistance for the IRP programs are provided, in part, through the U.S. Department of Agriculture Rural Development(USDA), Idaho Department of Commerce, Idaho Department of Employment, Economic Development Administration (EDA), Housing and Urban Development (HUD), Small Business Administration (SBA), and Department of Labor (DOL).
FINANCING TERMS
Loans from the IRP require a 15% minimum capital injection from the borrower. There usually is a 50% financing match by a bank or other lending institution. Their collateral consists of a first lien position on assets.
PAC is the subordinate lender. The interest rate is fixed at the prime rate with a floor of 5%. The minimum IRP portion is $10,000 with a maximum of $150,000. Working capital and inventory term can be up to five years, equipment term up to seven years, and real estate is 15 to 20 years.
ELIGIBILITY REQUIREMENTS
An eligible small business must be a for-profit corporation, partnership or proprietorship. The net worth of the business may not be in excess of $6,000,000 and its net profit after taxes must have averaged less than $2,000,000 during the previous two years.
The project should create/retain one full-time, permanent job or full-time equivalent, within a two year period for every $35,000 borrowed from the IRP.
ELIGIBLE PROJECTS/COSTS
- Projects must be located within the five northern counties of Idaho Listed above.
- Land and/or building purchases.
- Machinery and equipment purchases.
- New business acquisition.
- Working capital.
- Some soft costs such as interim interest, appraisal fees, etc.
INELIGIBLE PROJECTS/COSTS
- NOT for lending institutions, gambling facilities, real estate speculation, agricultural production, and recreation facilities which are not open to public.
COLLATERAL
Usually the mortgage or Deed of Trust on land and buildings being financed, liens on machinery, equipment and fixtures, lease assignments, and personal guarantees will serve as collateral.
FINANCING COSTS
A Processing Fee of 1.5%, Escrow Fees, Legal Fees, Title Insurance, Recording and Filing Fees, and Environmental Fees may be applicable.
PREAPPLICATION INFORMATION
- Current personal financial statements and tax returns (3 years) for all principals.
- Company historical financial statements and tax returns (3 years), to include balance sheet and profit and loss statements.
- Resumes of principals
- Short description of business.
- Business Plan
- Two year projected balance sheet and profit and loss statement.
- Itemization of project costs:
- Land
- Site Improvement
- New Construction
- Renovation
- Equipment
Panhandle Area Council, Inc. does not discriminate by reason of race, color, religion, sex, marital status, disability, age, or national origin in services or accommodations offered or provided to our loan clients and potential loan clients. PAC is an equal opportunity provider.
