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Notice

Intermediary Lending Pilot (ILP) Program

Document Details

Information about this document as published in the Federal Register.

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This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

ACTION:

Notice of Funds Availability (NOFA).

SUMMARY:

The U.S. Small Business Administration (SBA) requests that eligible organizations submit applications to become Intermediary Lending Pilot (ILP) Intermediaries. SBA will select up to 20 applicants to participate in the ILP program and receive direct loans of up to $1,000,000 each. ILP Intermediaries must use the ILP Loan funds to make loans of up to $200,000 to startup, newly established, or growing small business concerns. ILP Intermediaries that received SBA ILP funding in 2011 are not eligible for funding in 2012.

DATES:

The application deadline is 5 p.m. on May 25, 2012.

ADDRESSES:

Completed applications must be sent to U.S. Small Business Administration, Office of Financial Assistance, Microenterprise Development Branch, Attention: Jody Raskind, Chief, 409 3rd Street SW., Suite 8200, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT:

Jody Raskind, (202) 205-7076.

SUPPLEMENTARY INFORMATION:

Background: The Small Business Jobs Act of 2010 (Pub. L. 111-240), enacted September 27, 2010 (the Act), includes a provision that requires SBA to implement an Intermediary Lending Pilot (ILP) program. Under the ILP program, SBA makes loans to selected nonprofit intermediaries for the purpose of providing loans to small businesses. SBA selected 20 ILP Intermediaries in 2011. SBA will use a competitive selection process to select up to an additional 20 ILP Intermediaries to participate in the program and receive ILP Loans of up to $1 million in 2012. ILP Loans have a 20 year term and an interest rate of 1%, with the first payment deferred for two years. SBA collects no fees on the loans and requires no collateral. An ILP Intermediary must use the ILP Loan proceeds to make loans of up to $200,000 to startup, newly established, or growing small businesses. Eligible intermediaries, which include private, nonprofit community development corporations, must have at least one year of experience making loans to startup, newly established, or growing small businesses. Existing ILP Intermediaries and SBA Microloan Intermediaries are not eligible to apply.

Available funding: The amount currently available for ILP Loans in fiscal year 2012 is $20,000,000. SBA intends to select up to 20 applicants to become ILP Intermediaries and to make loans of up to $1,000,000 to each selected ILP Intermediary. SBA reserves the right to select and fund some, all, or none of the applicants for the ILP program under this NOFA.

Application materials: Organizations seeking to apply for the ILP program can obtain an ILP Application for Selection (SBA Form 2417) and the FY 2012 ILP Program Announcement, which describes the evaluation criteria and SBA's review and selection processes, at http://www.sba.gov/content/intermediary-lending-pilot. More information about all aspects of the ILP program is available in the regulations authorizing the ILP program at 13 CFR part 109, as published in the Federal Register on April 1, 2011 (76 FR 18007), and in the ILP Procedural Guide, available at http://www.sba.gov/content/intermediary-lending-pilot.

Application submission rules: Complete applications must be received by the Chief, Microenterprise Development Branch in the Office of Financial Assistance, or by specific individuals designated by the Chief, by the deadline date and time. Applications received after that date and time will not be considered. Due to the required irradiation of regular mail delivered through the U.S. Postal Service prior to its delivery to Federal offices in the Washington, DC area, organizations are encouraged to use a “next day” or “overnight delivery” method to ensure the timely receipt of materials. Each application must be submitted in two different formats: (1) Hard copy with original signatures, and (2) in Word or PDF format on a standard Compact Disc. See the instructions in the ILP Program Application for Selection (SBA Form 2417) for specific requirements. Applications sent via email or by facsimile will not be accepted.

Authority: 15 U.S.C. 636(l) and 13 CFR 109.200(a).

Grady B. Hedgespeth,

Director, Office of Financial Assistance.

[FR Doc. 2012-8998 Filed 4-13-12; 8:45 am]

BILLING CODE 8025-01-P