USDA Intermediary Re-lending Program (IRP)
Prairieland Economic Development Corporation
The Southwest Initiative Foundation (SWIF) is a regional organization funded by the McKnight Foundation for the purpose of promoting community and economic development over the 18 county area of southwestern Minnesota.
The IRP (Intermediary Re-lending Program) is a loan to Prairieland EDC from USDA Rural Development. Prairieland EDC, in turn, loans the funds to eligible small businesses for financing fixed assets or working capital. The goals of the IRP include these objectives: create and retain jobs for the citizens of the area, provide rural business with a source of capital not readily available in the rural area, and generate tax revenue for the cities and counties of the region.
- Community Impact – Jobs / Tax Base / Capital
- Business start-ups and expansions are eligible
- Eligible business types include value-added manufacturing, agri-processing, technologically innovative industries, tourism, information industries and agricultural marketing.
- Loan funds are not available for companies relocating within Minnesota.
- IRP loans cannot exceed 50% of the total project cost.
- A resolution of support from the company’s local unit of government is required.
- Funds may be used for real estate, machinery & equipment and / or working capital.
- At least 1 job must be created for each $15,000 lent.
- Jobs should principally benefit low-income people.
- Loan from $5,000 to $250,000 is available.
- Fixed Interest Rate of 6% today
- Terms up to 15-years are available, depending upon the collateral.
- At least a shared 1st position on collateral is preferred- rarely subordinate.
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