We are committed to helping improve the economy and quality of life in rural America.
This grant program supports Microenterprise Development Organizations (MDOs) by offering both loans and grants aimed at the startup and growth of microenterprises in rural areas. It provides financial assistance for the creation of a Rural Microloan Revolving Fund and offers technical assistance and training for microloan borrowers and micropreneurs. The program sets specific qualifications for MDOs, including experience in managing a Revolving Loan Fund or related training, as well as successful participation as an intermediary lender under the U.S. Small Business Administration (SBA) Microloan Program or similar loan programs. Funding includes grants up to $205,000 annually for technical assistance, with a requirement for at least 15 percent matching funds, and loans ranging from $50,000 to $500,000 to establish a Rural Microloan Revolving Fund. The program outlines specific terms for these loans, such as a maximum term of 20 years and a two-year payment deferral, as well as criteria for loans to ultimate recipients, like a cap of $50,000 and a fixed interest rate. Loan recipients may use funds for various business activities, including working capital, debt refinancing, purchasing equipment and supplies, and improving real estate.