Intermediary relending program
In general
Eligible entities
Entities eligible for loans and loan guarantees described in subsection (a) are—
public agencies;
Indian tribes;
cooperatives; and
nonprofit corporations.
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—
predominately serve communities in rural areas; and
as determined by the Secretary—
promote community development;
establish new businesses;
establish and support microlending programs; and
create or retain employment opportunities.
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—
$400,000; and
50 percent of the loan to the eligible entity under subsection (a).
Applications
In general
Evaluation
In evaluating applications submitted under paragraph (1), the Secretary shall—
take into consideration the previous performance of an eligible entity in carrying out projects under subsection (c); and
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
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.
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—
current on all principal and interest payments; and
in compliance with loan covenants.