The USDA Intermediary Relending Program (IRP) provides low-interest loans to intermediary lenders, who then re-lend the funds to businesses and community development projects in rural Texas communities. IRP loans may reach ultimate borrowers at favorable terms that would not be available through conventional commercial lending.
How the IRP Works
USDA lends funds at 1% interest to qualified intermediary organizations, typically CDFIs, regional planning commissions, or tribal entities. These intermediaries then re-lend the funds to eligible businesses and projects in rural areas at negotiated terms. The two-tier structure allows intermediaries to offer below-market rates while maintaining sustainable lending operations.
Key Terms
- USDA loan to intermediary: 1% interest, 30-year term
- Ultimate borrower maximum: $400,000 or 75% of project cost
- Eligible areas: Rural communities with populations under 50,000
- Eligible uses: Business startup and expansion, community development, job creation
Texas IRP Intermediaries
Several Texas organizations serve as USDA IRP intermediaries, including regional councils of government, CDFIs, and economic development organizations. Contact the USDA Texas Rural Development office for a current list of active intermediaries in your region.
Eligibility for Texas Businesses
Your business must be located in a USDA-eligible rural community. Many Texas towns and unincorporated areas qualify. The USDA eligibility map tool at rd.usda.gov/eligibility confirms whether your location is eligible. Businesses must demonstrate job creation or community economic benefit.
How to Access IRP Funding
Contact your nearest USDA Rural Development office to identify IRP intermediaries serving your area. You apply to the intermediary organization, not directly to USDA. Each intermediary sets its own underwriting criteria within USDA guidelines.
Find More Programs for Your Business
The USDA Intermediary Relending Program in Texas is just one of many programs that Texas businesses may be eligible for. Federal, state, and local governments offer a range of grants, tax credits, loans, and incentives.
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