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 with loans and grants. The primary goals are to assist microenterprises with startup and growth initiatives through a Rural Microloan Revolving Fund and to offer training and technical assistance to microloan borrowers and micro-entrepreneurs. Grants are available up to $205,000 annually for technical assistance to rural micro-entrepreneurs or microenterprises, requiring at least 15 percent matching funds. Loans ranging from $50,000 to $500,000 aim to establish a Rural Microloan Revolving Fund, with a total aggregate debt limit of $2.5 million. Loan terms include a maximum duration of 20 years, a two-year payment deferral, and the establishment of a loan loss reserve fund. Loans to the end recipients can go up to $50,000 with a fixed interest rate and are limited to covering 75 percent of the project cost. The funds may be used for a variety of business activities and expenses such as working capital, debt refinancing, purchasing equipment and supplies, and real estate improvements. Microenterprise Development Organizations are required to have experience in managing a Revolving Loan Fund or demonstrate necessary education, training, or participation in similar loan programs.