We are committed to helping improve the economy and quality of life in rural America.
The grant program supports Microenterprise Development Organizations (MDOs) by providing loans and grants aimed at assisting the start-up and growth of microenterprises. It offers financial support for establishing a Rural Microloan Revolving Fund and for providing training and technical assistance to microloan borrowers and micro-entrepreneurs. To be eligible, MDOs must demonstrate experience in managing a Revolving Loan Fund or show capacity through education, training, or participation in other similar loan programs. The funding includes grants of up to $205,000 annually for technical assistance with a requirement for at least 15% matching funds and loans ranging from $50,000 to $500,000 for the Rural Microloan Revolving Fund, with a total aggregate debt cap of $2.5 million. Loan terms offer a maximum duration of 20 years with a two-year payment deferral and mandate the establishment of a loan loss reserve fund. Loans to ultimate recipients are capped at $50,000, must have a fixed interest rate, and are limited to 75 percent of project costs. The funds can be used for various business activities and expenses such as working capital, debt refinancing, purchasing equipment and supplies, and improving real estate.