Intermediary Loan Program

Objective

Three year pilot program in which SBA made 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 is for a maximum period of 20 years with deferred payments for the first two years. Intermediaries 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.

Who Can Apply

• Small Business Person

Applicants to the pilot program were required to 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 participate in SBA's microloan program were not eligible to become ILP intermediaries. However, affiliates of microloan intermediaries may have applied. Refer to Federal Register Notice Vol. 76, No. 63, dated Friday, April 1, 2011 starting on page 18007 for additional information.

Who Benefits

• Small Business Person

Not necessary

Assistance Types

• Direct Loan

Program Contact

James.Webb@sba.gov
202-619-0628