USDA Intermediary Relending Program (IRP)
USDA Rural Development
Up to $400,000 per borrower
Researched for this program: 5 rejection traps · 7 required documentsWhat decides this award ↓
Rural business loans through community lenders
USDA lends money at 1% interest to nonprofit intermediaries — CDFIs, community development organizations, and local governments — who then re-lend those funds to rural businesses at below-market rates. End borrowers (rural businesses) access loans up to $400,000 without going directly through USDA. Think of IRP as USDA's community lending engine: it capitalizes local lenders who can be more flexible on collateral and creditworthiness than commercial banks.
- Funding type
- Loan
- Level
- Federal
- Amount range
- $10,000 – $400,000
- Realistic amount
- Most IRP end-borrower loans range $50,000–$250,000. Small rural businesses (restaurants, retail, service businesses) typically receive $50,000–$150,000. Manufacturing and processing operations may access $200,000–$400,000.
- Deadline
- Paused — USDA is not holding its regular quarterly IRP competitions until full-year FY2027 appropriations pass and the NOFO is published. End borrowers still apply through a local IRP intermediary lender.
- Status
- paused
- States
- Nationwide
- Payment model
- loan
Who qualifies
- Rural business or public body in a rural area (population under 25,000, outside an urbanized area of 50,000+)
- Must be located in a rural area as defined by USDA Rural Development
- Financing must create or retain jobs or stimulate rural economic activity
- Specific eligibility criteria set by the intermediary lender — CDFIs and community development organizations often have additional requirements
- Businesses in most industry sectors are eligible; some intermediaries specialize in specific sectors (agriculture, manufacturing, healthcare)
- Cannot be for speculative investment or passive income
- Typically requires the borrower to demonstrate inability to obtain adequate financing from commercial sources
Hard requirements
- Rural location required
- Funds intermediaries, not businesses directly
What it covers
Eligible expenses
- Acquisition of land or facilities for business purposes
- Construction, conversion, enlargement, repair, or modernization of buildings
- Purchase of equipment, machinery, or supplies
- Working capital for business startup or expansion
- Start-up costs and operating expenses
- Pollution control and abatement
- Refinancing existing debt when improvement in business operations results
Ineligible expenses
- Distribution to owners from business equity
- Agricultural production (farming operations themselves — IRP is for rural businesses, not farms; farms use FSA programs)
- Lines of credit (IRP is for term loans, not revolving credit lines)
- Projects primarily serving non-rural populations
- Speculative real estate investment
How to apply
-
1
Find an IRP intermediary in your area
Contact your state USDA Rural Development office (rd.usda.gov/contact-us/state-offices) to get a list of current IRP intermediary lenders in your state. Intermediaries are CDFIs, non-profits, and local development organizations — not USDA itself. Each has its own revolving loan fund and application process.
~4 hrs
-
2
Apply through the intermediary lender
Submit your loan application to the intermediary. Requirements vary by intermediary but typically include: business plan or narrative, 2–3 years of financial statements, cash flow projections, collateral description, and personal financial statements. CDFIs often have simplified documentation requirements compared to banks.
~4 hrs
-
3
Intermediary underwrites and approves
The intermediary reviews your application using their own credit standards — often more flexible on collateral and credit score than commercial banks. The intermediary sets the interest rate from their revolving fund (typically prime + 0–3%). Approval timelines vary: 2–8 weeks for most intermediaries.
~4 hrs
-
4
Receive loan and manage repayment
Funds disbursed directly from the intermediary's revolving loan fund. Repayments go back to the intermediary, which re-lends them to other rural businesses — hence 'revolving.' Some intermediaries pair IRP loans with technical assistance (business planning, financial coaching) at no extra cost.
~4 hrs
The interest rate depends entirely on which intermediary you use — shop multiple IRP lenders in your state. CDFIs often pair IRP loans with free technical assistance.
Deadline & timing
End borrowers apply through the local IRP intermediary, not USDA directly. First step: find an IRP intermediary in your state via rd.usda.gov. Intermediaries manage their own application timelines and revolving loan fund availability.
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