IRP Rural Development

The Intermediary Relending Program (IRP) loan provides fixed asset financing for any existing or proposed for-profit businesses located in the counties of Bledsoe, Bradley (outside city limts of Cleveland), Grundy, Hamilton (outside city limits of Chattanooga), Marion, McMinn, Meigs, Polk, Rhea, and Sequatchie Tennessee or Dade, Walker, Chattooga, Catoosa, Whitfield (outside the city limits of Dalton), Murray, Gordon, Fannin, Union, and Towns Georgia.

Use of Proceeds

Funding provided by the IRP Rural Development loan is required to be used for fixed asset financing (land, land improvements, building construction, purchase of buildings, renovation of buildings, machinery or equipment).

Interest Rate

The interest rate on IRP loans is fixed for the term of the loan.

Term of the Loan

The term of an IRP Rural Development loan is up to fifteen years. There are no prepayment penalties and the maximum loan amount of an IRP Rural Development loan is $150,000 and is limited to $15,000 per job created.

Lending Partnership

With an IRP Rural Development loan, Southeast Development Corporation takes a subordinate position behind a bank loan in the same project. Business owners are required to have 10% equity position in any IRP-financed project. Typically, the IRP Rural Development loan is structured as follows:

IRP Rural Development Loan Structure
Source	Amount
Commercial Lender	60% (First Mortgage)
SDC IRP	30%
Equity Injection	10%
Project Cost	100%

IRP Counties

To be eligible for an IRP Rural Development loan, the business must be located in one of the following IRP counties.

Tennessee: Bledsoe, Bradley, Grundy, Hamilton, Marion, McMinn, Meigs, Polk, Rhea, and Sequatchie
Georgia: Dade, Walker, Chattooga, Catoosa, Whitfield, Murray, Gordon, Fannin, Union, and Towns.