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.

Use 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.

Maturity Term

Up to fifteen years, depending on individual project needs.

Job Creation

Owners are required to have a minimum 10% equity position in any IRP project.

Maximum Loan Amount

$150,000

Prepayment Penalty

None

Closing Cost

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.