We are committed to helping improve the economy and quality of life in rural America.
This program aims to support the startup and growth of microenterprises through loans and grants offered to Microenterprise Development Organizations (MDOs). The funding supports the establishment of a Rural Microloan Revolving Fund, and provides for training and technical assistance to microloan borrowers and micro-entrepreneurs. To qualify, MDOs must demonstrate experience in managing a Revolving Loan Fund or have received appropriate training. They may also qualify by demonstrating active and successful participation as intermediary lenders under the U.S. Small Business Administration Microloan Program or other similar loan programs. Grants up to $205,000 annually are available for technical assistance, requiring at least 15 percent matching funds from recipients. Loans ranging from $50,000 to $500,000 can be used to create a Rural Microloan Revolving Fund, with a cap on total aggregate debt of $2.5 million. Loan terms for MDOs extend up to 20 years with a two-year payment deferral and a requirement to establish a loan loss reserve fund. Loans to ultimate recipients can reach up to $50,000 with a fixed interest rate and are limited to 75 percent of project costs. Microlenders may use these funds for various business activities including working capital, debt refinancing, purchasing equipment and supplies, and improving real estate.