7 USC 1936b - Intermediary relending program

U.S Code last checked for updates: May 01, 2024

§ 1936b.

Intermediary relending program

(a)

In general

(b)

Eligible entities

Entities eligible for loans and loan guarantees described in subsection (a) are—

(1)

public agencies;

(2)

Indian tribes;

(3)

cooperatives; and

(4)

nonprofit corporations.

(c)

Eligible purposes

The proceeds from loans made or guaranteed by the Secretary pursuant to subsection (a) may be relent by eligible entities for projects that—

(1)

predominately serve communities in rural areas; and

(2)

as determined by the Secretary—

(A)

promote community development;

(B)

establish new businesses;

(C)

establish and support microlending programs; and

(D)

create or retain employment opportunities.

(d)

Limitation

(e)

Limitation on loan amounts

The maximum amount of a loan by an eligible entity described in subsection (b) to individuals and entities for a project under subsection (c), including the unpaid balance of any existing loans, shall be the lesser of—

(1)

$400,000; and

(2)

50 percent of the loan to the eligible entity under subsection (a).

(f)

Applications

(1)

In general

(2)

Evaluation

In evaluating applications submitted under paragraph (1), the Secretary shall—

(A)

(i)

take into consideration the previous performance of an eligible entity in carrying out projects under subsection (c); and

(ii)

in the case of satisfactory performance under clause (i), require the eligible entity to contribute less equity for subsequent loans without modifying the priority given to subsequent applications; and

(B)

in assigning priorities to applications, require an eligible entity to demonstrate that it has a governing or advisory board made up of business, civic, and community leaders who are representative of the communities of the service area, without limitation to the size of the service area.

(g)

Return of equity

The Secretary shall establish a schedule that is consistent with the amortization schedules of the portfolio of loans made or guaranteed under subsection (a) for the return of any equity contribution made under this section by an eligible entity described in subsection (b), if the eligible entity is—

(1)

current on all principal and interest payments; and

(2)

in compliance with loan covenants.

(h)

Regulations

(i)

Authorization of appropriations

(Pub. L. 87–128, title III, § 310H, as added Pub. L. 113–79, title VI, § 6017(a), Feb. 7, 2014, 128 Stat. 845; amended Pub. L. 115–334, title VI, § 6416, Dec. 20, 2018, 132 Stat. 4762.)

cite as: 7 USC 1936b