---
kind: "section"
citation: "7 U.S.C. § 1936b"
title: "7"
title_heading: "Agriculture"
number: "1936b"
heading: "Intermediary relending program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/1936b"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter I — Real Estate Loans"
---

# §1936b. Intermediary relending program

- (a) **In general—** The [Secretary](/usc/7/499a.md?p=b-2) may make or guarantee loans to eligible entities described in [subsection (b)](#b) so that the eligible entities may relend the funds to individuals and entities for the purposes described in [subsection (c)](#c).
- (b) **Eligible entities—** Entities eligible for loans and loan guarantees described in [subsection (a)](#a) are—
  - (1) public agencies;
  - (2) Indian tribes;
  - (3) cooperatives; and
  - (4) nonprofit corporations.
- (c) **Eligible purposes—** The proceeds from loans made or guaranteed by the [Secretary](/usc/7/499a.md?p=b-2) pursuant to [subsection (a)](#a) may be relent by eligible entities for projects that—
  - (1) predominately serve communities in [rural areas](/usc/7/1991.md?p=a-13-A); and
  - (2) as determined by the [Secretary](/usc/7/499a.md?p=b-2)—
    - (A) promote community development;
    - (B) establish new businesses;
    - (C) establish and support microlending programs; and
    - (D) create or retain [employment](/usc/7/499a.md?p=b-10) opportunities.
- (d) **Limitation—** The [Secretary](/usc/7/499a.md?p=b-2) shall not make loans under [section 9812(a) of title 42](/usc/42/9812.md?p=a).
- (e) **Limitation on loan amounts—** The maximum amount of a loan by an eligible entity described in [subsection (b)](#b) to individuals and entities for a project under [subsection (c)](#c), including the unpaid balance of any existing loans, shall be the lesser of—
  - (1) $400,000; and
  - (2) 50 percent of the loan to the eligible entity under [subsection (a)](#a).
- (f) **Applications—**
  - (1) **In general—** To be eligible to receive a loan or loan guarantee under [subsection (a)](#a), an eligible entity described in [subsection (b)](#b) shall submit to the [Secretary](/usc/7/499a.md?p=b-2) an application at such time, in such manner, and containing such information as the [Secretary](/usc/7/499a.md?p=b-2) may require.
  - (2) **Evaluation—** In evaluating applications submitted under [paragraph (1)](#f-1), the [Secretary](/usc/7/499a.md?p=b-2) shall—
    - (A)
      - (i) take into consideration the previous performance of an eligible entity in carrying out projects under [subsection (c)](#c); and
      - (ii) in the case of satisfactory performance under [clause (i)](#f-2-A-i), require the eligible entity to contribute less equity for subsequent loans without modifying the priority given to subsequent applications; and
    - (B) in assigning priorities to applications, require an eligible entity to demonstrate that it has a governing or advisory board made up of business, civic, and community leaders who are representative of the communities of the service area, without limitation to the size of the service area.
- (g) **Return of equity—** The [Secretary](/usc/7/499a.md?p=b-2) shall establish a schedule that is consistent with the amortization schedules of the portfolio of loans made or guaranteed under [subsection (a)](#a) for the return of any equity contribution made under this section by an eligible entity described in [subsection (b)](#b), if the eligible entity is—
  - (1) current on all principal and interest payments; and
  - (2) in compliance with loan covenants.
- (h) **Regulations—** The [Secretary](/usc/7/499a.md?p=b-2) shall promulgate regulations and establish procedures reducing the administrative requirements on eligible entities described in [subsection (b)](#b), including regulations to carry out the amendments made to this section by the Agriculture Improvement Act of 2018.
- (i) **Authorization of appropriations—** There is authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2014 through 2023.

## Source credit

(Pub. L. 87–128, title III, § 310H, as added Pub. L. 113–79, title VI, § 6017(a), Feb. 7, 2014, 128 Stat. 845; amended Pub. L. 115–334, title VI, § 6416, Dec. 20, 2018, 132 Stat. 4762.)

## Notes

### Editorial Notes

### References in Text

The amendments made to this section by the Agriculture Improvement Act of 2018, referred to in subsec. (h), means the amendments made to this section by Pub. L. 115–334.

### Amendments

2018—Subsecs. (e) to (h). Pub. L. 115–334, § 6416(2), added subsecs. (e) to (h). Former subsec. (e) redesignated (i).

Subsec. (i). Pub. L. 115–334, § 6416(1), (3), redesignated subsec. (e) as (i) and substituted “2023” for “2018”.