INTERMEDIARY RELENDING PROGRAM (IRP)

The Alabama Department of Agriculture and Industries has entered into an agreement with the USDA Rural Development’s IRP program to provide funding for the purpose of increasing local economic activity and employment in rural communities and to promote/fund green energy projects. The Alabama Department of Agriculture & Industries (intermediary) is the conduit for these revolving loan funds.

How much are the loans?
Ultimate recipients may borrow a minimum of $25,000 and up to a maximum of $125,000.

Who can apply for loan funds from the Intermediary? The following entities may apply for loans from the IRP/AL Department of Agriculture provided they owe no delinquent debt to the Federal Government:

  • U. S. citizens or individuals who have been legally admitted to the U.S.
  • Those located in a rural area defined as an area with a population of 25,000 or less
  • An entity that is able to incur debt, give security, and repay the loan
  • A corporation, partnership, LLC, individual, non-profit corporation, public body.
  • Small Manufacturing Companies
  • Manufacturing related services
  • Developing services that have a uniqueness or technology that will add value to Alabama’s economy.
  • Other businesses that may help a community improve its development potential.

What types of projects are eligible?
IRP funding may be used for a number of purposes but to be eligible, ultimate recipients must be located in a rural area. Under the IRP, a rural area is any area that is not inside a city with a population of 25,000 or more according to the latest decennial census. Some examples of eligible projects are:

  • The acquisition, construction, conversion, enlargement, or repair of a business or business facility, particularly when jobs will be created or retained.
  • The purchase or development of land (easements, rights of way, buildings, facilities, leases, materials)
  • To purchase equipment, leasehold improvements, machinery, supplies
  • Start up costs and working capital
  • Pollution control and abatement
  • Transportation Services
  • Feasibility studies
  • Hotels, motels, B&Bs, convention centers

Loan Stipulations

  • Ultimate recipient must employ at least 30% of its workforce from members of families with income below the poverty line for the Southeast Alabama region. 
  • Recipient must be unable to be financed through commercial sources at reasonable rates and terms, consistent with the IRP loan rates and terms. 
  • Recipient must be a business where 51% of its ownership/membership is by those who are either citizens of the United States or reside in the U.S. after being legally admitted for permanent residence. 
  • Loan must be secured by a first mortgage on a tangible item that retains value for the length of the IRP loan and must be clearly identified and may or may not be a part of the specific funded project.
  • Recipient will be required to pay a one time processing fee of up to 1.5% of the loan due at the time of closing and other possible closing fees. 
  • IRP participation cannot exceed 60% of the total project cost. 

How to Apply:
To apply for funding or additional information for the Intermediary Relending Program, please contact the Center for Alternative Fuels at the Alabama Department of Agriculture at 
caf@agi.alabama.gov or 334-240-7287.

IRP Application