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 Use

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 Use

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

Fees/Rates

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 One Mill Plaza, Laconia, NH 03246

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.