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 offering loans and grants, facilitating the startup and growth of microenterprises through the Rural Microloan Revolving Fund. It aims to provide microloan borrowers and micro entrepreneurs with necessary training and technical assistance. Grant funds, up to $205,000 annually, are available for technical training for rural micro-entrepreneurs or microenterprises with a requirement for at least 15 percent matching funds. Loans ranging from $50,000 to $500,000 are provided for establishing a Rural Microloan Revolving Fund by the MDOs, with an overall debt cap at $2.5 million. Loan terms offer a maximum duration of 20 years, including a two-year payment deferral and the establishment of a loan loss reserve fund. The loans to ultimate recipients are capped at $50,000 with a fixed interest rate and limited to 75 percent of the project cost. Usage of the funds spans across various business activities including working capital, debt refinancing, purchasing equipment and supplies, and improving real estate.