Intermediary Relending Loan
The availablity of capital for new business startups, retention and expansion of existing businesses, and technical assistance is an obstacle for the development of our region. After assessing these needs the GVEDC applied and was approved for the United States Department of Agriculure (USDA) Intermediary Relending Loan Program (IRP) to help eliviate this problem.
What is the IRP?
The IRP is a loan fund provided to eligible recipients for community development projects, the establishments of new business and the expasion of exiting businesses that will create or salvage the job opportunities for the people of Greenbrier, Monroe and Pocahontas Counties.
Individuals, public or private organizations, or other legal entities with authority to incur the debt and carry out the purpose fo the loan, that is a citizen of the united States, located in a rural area and unable to finance the proposed project from its own resources or through commerical credit or other Federal, State, or local programs at reasonable terms and rates.
Recipients can borrow up to 75% of the total project cost not to exceed $125,000. Interest rate will be set at Prime plus 2% on the day of closing.
Eligible Loan Purposes
Business construction, repairs, modernization, purchase of land, buildings, leases, materials, equipment, supplies, pollution control, start-up operating costs, working capital, debt refinanceing, hotels, motels, revolving lines of credit, etc.
Ineligible Loan Purpose
- Assistance in excess of what is needed to accomplish the purpose of the project.
- No charitable institutions that would not have revenue from sales or fees to suppot the operation and repay the loan. (i.e. churches, fraternal organizations ect.)
- Agricultural production
- The transfer of ownership unless the loan will keep the business from closing, or prevent the loss of jobs in the area, or expanded job opportunities.
- Community antenna television services or facilities.
- Any illegal activity.
- Lending or investment institutions and insurance companies.
- Golf courses, race tracks, or gambling facilities.
- Any project that is in violation of either a Federal, State or local environmental protection law or regulation.
Anyone interested in the IRP should contact the office for more information.