Intermediary Relending Program
The SEARP&DC Intermediary Relending Program (IRP) is a business financing program providing below market fixed rate loans for development
projects in rural areas of Barbour, Coffee, Covington, Dale, Geneva, Henry and
Houston Counties. Development projects within the city limits of the City of
Dothan are not eligible. Program funding originated through USDA/Rural
Development, and their loan guidelines and environmental regulations
apply.
Type of Financing Available:
Direct loans made by
SEARP&DC to promote, stimulate, develop and advance business prosperity,
economic welfare and to create and retain permanent jobs in rural areas of
Southeast Alabama. Loans must be adequately collateralized.
Uses of Proceeds:
Fixed asset financing (land, building
construction/renovation, purchase of land and buildings, machinery and
equipment).
Eligible Businesses:
Any existing or proposed business regardless of
size. Must be "for profit". Must be located in eligible rural area of Southeast
Alabama.
Interest Rates:
Below prime and fixed. Rates determined by project
needs.
Term:
Up to fifteen years, depending on individual project
needs.
Job Generation or Retention:
Required. Loan cannot exceed
$15,000 per job created or retained with IRP funds.
Owner's Equity:
Owners are required to have a minimum 10% equity position in any
IRP project.
Maximum Loan Amount:
$150,000
Prepayment Penalty:
None
Closing Costs:
1.5% of IRP loan
amount, plus applicable legal fees.
Insurance Requirements:
Life insurance on the principals of the
business and hazard insurance on the value of the assets financed.
Personal Guarantees:
Required from all persons owning 20% or more of
the business.IRP Brochure
IRP Application (in Word
format)
