Local
Development Corporation
Intermediary Relending Program
Loan Policies and Eligibility
Criteria Word
PDF
The Tioga County Intermediary Relending Program is intended to provide
low cost loans to eligible Tioga County businesses. All eligible loan
applicants must demonstrate a need for financing. New or existing
for-profit entities located in or wishing to locate in Tioga County where
the assistance will result in the direct creation of new jobs or the
retention of existing jobs are eligible.
1. Eligible Applicants:
For-Profit entities located in Tioga County or wishing to locate in
Tioga County whose projects meet the criteria for eligibility. Eligible
applicants shall include sole proprietors, partnerships, corporations,
and limited liability companies.
2. Ineligible Applicants:
Businesses which have principals or immediate family members who hold
a legal or financial interest or influence in Tioga County or the Tioga
County Local Development Corporation (LDC),) shall be deemed to have a
conflict of interest.
3. Eligible Projects:
Loan proceeds may be used for the following:
(a)purchase of capital equipment;
(b)real estate acquisition and/or new construction;
(c)renovations and/or additions to facilities;
(d)inventory; and
(e)working capital.
4. Eligible Activities:
Business acquisitions, construction, conversion, enlargement, repair,
modernization, or development; the purchase and development of land,
easements, rights-of-way, building, facilities, leases, or materials;
the purchase of equipment, leasehold improvements, machinery, or
supplies; pollution control and abatement; transportation services;
startup operating costs and working capital; feasibility studies;
reasonable professional fees related to eligible projects; and
aquaculture as defined by Rural Development in Section 1948.109 (b) (2).
5. Ineligible Activities:
Speculative activities (land banking and speculative buildings);
purchase or finance equity in private business; debt consolidation or
refinancing; agriculture production (except aquaculture as defined
previously, commercial nurseries, forestry, livestock and poultry
processing, growing of mushrooms or hydroponics, all of which are
eligible); any illegal activity, hotels, motels, tourist homes,
convention centers or amusement centers; and relocation out of Tioga
County.
6. Maximum Loan Size:
$100,000.00 maximum or 50% of a total project, whichever is less,
based on the availability of funds. The total amount of IRP assistance
shall also be subject to job creation limits as noted in no. 11 below.
7. Matching Private Investment Required:
At least 50% of the total project cost must be otherwise provided by
the applicant in the form of:
(a)bank financing;
(b)other private financing;
(c)equity; and/or
(d)public financing other than the requested loan.
8. Interest Rate:
1% below prime or 5% whichever is higher.
9. Loan Terms:
General guidelines:
Inventory/working capital up to 2 years
Renovations and/or additions up to 10 years
Acquisition and/or new construction up to 15 years
Purchase of capital equipment useful life of equipment
Loan terms may be blended if loan proceeds are for more than one use.
10. Collateral:
Discretion of loan administrator. Personal guarantees required of any
principal with 20% or more ownership.
11. Job Impact:
One full-time job (37.5 hours) for each $40,000.00 loaned. A minimum
of 30% of the jobs must be available to persons from families who meet
the IRP definition of poverty.
12. Fees:
$150.00 non-refundable application fee; 1% service fee; loan closing
costs, and all costs incurred in enforcing the executed promissory note.
13. Payment Schedule:
All loan payments due on the first day of the month. Late fee
assessed after ten days.
14. Code Compliance:
Required.
15. Environmental Audit:
All applicants must demonstrate compliance with local, state, and
federal environmental requirements. Projects involving real estate must
provide a current environment audit.
16. Targeting Criteria:
Job Retention/Creation.
All loans must comply with the requirements of federal and state laws
concerning civil rights, the environment, flood protection insurance and
access for the physically handicapped.
This institution is an equal opportunity provider.
Tioga County Local Development
Corporation
Pre-Application Word
PDF
Loan
Application Word
PDF
This is an Equal Opportunity Program.
USDA prohibits discrimination in all its programs and activities on
the basis of race, color, national origin, sex, religion, age, disability,
political beliefs, sexual orientation or marital or family status. (Not
all prohibited bases apply to all programs.)
Persons with disabilities who require alternative means for
communication of program information (Braille, large print, audiotape,
etc) should contact USDA’s TARGET center at 202-720-2600 (voice and TDD).
To file a complaint of discrimination write:
USDA, Director, Office of Civil Rights, Room 326-W, Whitten
Building, 1400 Independence Avenue, SW, Washington DC
20250-9410 or call 202-720-5964 (voice and TDD).
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