Intermediary Relending Program (IRP)
IRP, sponsored by the U.S. Department of Agriculture, Rural Development Division, is designed to assist healthy, growing businesses with special financing needs create job opportunities and stimulate economic activity in rural communities. EMDC offers the IRP in Hancock, Knox, Penobscot, Piscataquis, Waldo and Washington Counties, with the exception of Bangor.
Use: Loan funds may be used for manufacturing, wholesale/distribution, and service activities that produce a net economic gain for the community and surrounding area. Local service, retail and commercial activities may be funded if the proposed project meets an important community need. Certain nonprofit enterprise and municipal facility projects may also qualify. IRP financing cannot be used for agricultural production, charitable institutions, churches, organizations affiliated with or sponsored by churches, fraternal organizations, golf courses, gambling facilities, lending and investment institutions and insurance companies.
Amount: 250,000
Interest Rate: Interest rates are negotiable and are fixed for the life of the loan.
Collateral: May include real estate, machinery and equipment, inventory and accounts receivable, lease assignments, etc. Personal guarantees of persons owning 20% or greater in the business will be required. Collateral outside the business may be necessary to secure the loan.
Term: The length of time for repayment depends on the use of the loan proceeds and the ability of the business to repay. Generally, the loan terms are: *5 years for working capital *Up to 10 years of machinery & equipment, fixtures and furniture based on the useful life of assets being purchased *Up to 15 years for real estate
The IRP is used for term financing only. EMDC does not offer lines of credit through this program. Fees: The borrower will pay an origination fee of up to 2% of the IRP loan and will cover all EMDC's legal and out-of-pocket expenses incurred in closing the loan.
For IRP consideration, a business must: *Have 51% of the controlling interest owned by a U.S. Citizen *Demonstrate that the project will not proceed without IRP assistance *Commit all reasonable available resources to the project, obtain financial commitment from other sources of financing and demonstrate a reasonable likelihood that the loan can be repaid *Create or retain a meaningful number of jobs
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Eastern Maine Development Corporation
40 Harlow Street
Bangor , ME 04401
207-942-6389
207-942-3548
info@emdc.org
www.emdc.org

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