We are committed to helping improve the economy and quality of life in rural America.
This program is designed to support Microenterprise Development Organizations (MDOs) by providing them both loans and grants aimed at helping microenterprises start up and grow. Specifically, the program's goals include funding the establishment and growth of a Rural Microloan Revolving Fund and providing training and technical assistance to microloan borrowers and microentrepreneurs. To qualify, MDOs must demonstrate experience in managing a Revolving Loan Fund or show they have acquired necessary training for loan fund management from a qualified entity. They may also qualify by showing active and successful participation as an intermediary lender under the U.S. Small Business Administration (SBA) Microloan Program or similar programs. Grants are available to support technical assistance for rural micro-entrepreneurs or microenterprises, requiring at least 15% matching funds from applicants. Loans ranging from $50,000 to $500,000 are offered for setting up a Rural Microloan Revolving Fund with a maximum aggregate debt of $2.5 million and come with specific terms such as a 20-year maximum term, a two-year payment deferral, and the establishment of a loan loss reserve fund. Funds can be used for various business-related activities including working capital, debt refinancing, purchasing equipment and supplies, and real estate improvements.