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Intermediary Relending Program (IRP)
Purpose:
The primary goal of the Intermediary Relending Program (IRP) is to preserve and create employment opportunities in Belknap County. To maximize local economic initiatives, Intermediary Relending Program funds will be used to supplement, not substitute, capital that could be obtained from conventional financing or other funding sources. The BCEDC originates, processes and services IRP loans in partnership with the Rural Development, a division of USDA.
Economic Impact:
The program is designed to address a variety of economic and capital market conditions including the acquisition, retention and expansion of small businesses, the revitalization of downtowns and business districts, the preservation and creation of employment opportunities, and community development projects.
Eligible Uses
Generally, businesses may use IRP funds for new construction, acquisition, modernization, machinery and equipment, materials and permanent working capital. In specific cases, IRP financing can be used for value-added agriculture or refinance.
Ineligible Uses
IRP financing can not be used for agricultural production, investment institutions, golf courses, gambling facilities, educational, or religious institutions.
Borrower Requirements-
The borrower, known as the "ultimate recipient," must:
- be unable to finance the proposed project with capital from their own resources, banks, or other conventional financing sources.
- operate the business for which the loan is sought within Belknap County.
- be at least 51% owned by U.S. Citizens or resident aliens.
Credit Requirements -
A borrower must demonstrate:
- Sufficient cash flow to repay all obligations
- Reasonable security or collateral
Security
The IRP loan must be adequately secured to ensure repayment. Collateral may include real estate, machinery and equipment, inventory and accounts receivable, lease assignments, and personal guarantees. BCEDC’s security interest may be subordinate to private lenders in order to assist borrower in securing bank financing. Key man life insurance is required.
Size of Loans Available: 75% of total project costs, usually not to exceed $150,000
Interest Rate: Prime Rate plus 1.25% at closing
Application Fee: $75, with submission of application
Other Fees: 1% origination fee at closing, plus legal and closing costs
Terms: One to twenty years
Instructions on Applying
1. Download application form (4 pages)
2. Personal Financial Statement (3 pages)
3. Complete, sign, enclose application fee and mail to the BCEDC at 2 Airport Road, Gilford, NH 03249
Downloads:
IRP Application
Personal Financial Statement
IRP Addendum
Other terms and restrictions may apply. For complete details, contact the BCEDC.
The BCEDC is an Equal Opportunities Lender.
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