Intermediary Loan Program

 

Three year pilot program in which SBA will make direct loans of up to $1 million at an interest rate of 1 percent to up to 20 nonprofit lending intermediaries each year, subject to the availability of funds. Term of ILP loans will be for a maximum period of 20 years with deferred payments for the first two years. Intermediaries will then use the ILP loan funds to make loans of up to $200,000 to startup, newly established, or growing small business concerns. No small business (including affiliates) may have more than $200,000 outstanding under this program at one time.

General information about this opportunity
Last Known Status
Active
Program Number
59.062
Federal Agency/Office
Agency: Small Business Administration
Type(s) of Assistance Offered
Direct Loans
Program Accomplishments
Fiscal Year 2014: See www.sba.gov. Fiscal Year 2015: No Current Data Available Fiscal Year 2016: No Current Data Available
Authorization
Small Business Jobs Act of 2010, Title 13, Part 109, Section 1131, Public Law 111-240.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
An applicant must be a private nonprofit entity with not less than one year of experience of making loans to startups, newly established or growing small businesses. The applicant must have directly funded the loans and not simply provided referrals to loans made by another entity. If an applicant is made up of a consortium of organizations, each member of the consortium must be individually eligible. Intermediaries that currently participate in SBA's microloan program are not eligible to become ILP intermediaries. However, affiliates of microloan intermediaries may apply. Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007 for additional information.
Beneficiary Eligibility
Not necessary.
Credentials/Documentation
Generally applicants must initially submit an application which includes financial statements, certificate of good standing, resumes of individuals associated with the organization, business plan, at least one year experience of making small business loans $50,000 to $200,000, documentation supporting non-profit status, and plan for distributing loan funds within two years. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This program is excluded from coverage under OMB Circular No. A-110.
Award Procedure
Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007.
Deadlines
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
From 60 to 90 days. Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007.
Appeals
Not applicable.
Renewals
Only one award of $1 million is available to each intermediary.
How are proposals selected?
Information available at www.sba.gov.
How may assistance be used?
Loans shall be made for startup, newly established, and growing small business concerns for working capital, real estate, and the acquisition of materials, supplies, furniture, fixtures, and equipment. $20 million was set aside for this program each in FY 2011 and FY 2012. $20 million was set aside for this program each in FY 2011 and FY 2012. Three year pilot program in which SBA will make direct loans of up to $1 million at an interest rate of 1 percent of up to 20 nonprofit lending intermediaries each year, subject to the availability of funds. Term of loans will be for a maximum period of 20 years with deferred payments for the first two years. No ILP loan may be made to an eligible intermediary if the total amount of outstanding and committed to the eligible intermediary would, as a result of the loan, exceed $1 million during the participation of the eligible intermediary in the program.
What are the requirements after being awarded this opportunity?
Reporting
Quarterly ILP program activity reports accompanied with bank statements. Audited financial statements. Portfolio identification reports that must be submitted within 7 days of closing of the loan. Portfolio status reports that update payments and balance information on the ILP's portfolio. Expenditure reports are not applicable. Reports for any changes to the ILP's intermediary organization or financing.
Auditing
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Each ILP must submit audited financial statement annually.
Records
Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title Small Business Administration, Chapter 13, Part 109, Public Law P.L. 111--240. This program requires participating intermediaries to maintain a loan loss reserve of at least 5% of the outstanding principal balance of loans to small business concerns.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
All funds must be disbursed within the first two years of award. Program was funded through FY 2012. See the following for information on how assistance is awarded/released: Award is provided in not less than two installments with first installment not more than $500,000.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. See Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.
Headquarters Office
Jamie Davenport 409 3rd St., SW
8th Floor
Office of Financial Assistance, Washington, District of Columbia 20416 Email: jamie.davenport@sba.gov Phone: 202-205-7516
Website Address
http://www.sba.gov
Financial Information
Account Identification
73-1154-0-1-376.
Obligations
(Direct Loans) FY 14 Not Available; FY 15 Estimate Not Available; and FY 16 Estimate Not Available - Not applicable.
Range and Average of Financial Assistance
$1 million each for 20 ILP's with average of $1 million.
Regulations, Guidelines and Literature
See www.sba.gov
Examples of Funded Projects
Not Applicable.

 



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