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) through loans and grants. The primary objectives are to aid in the startup and growth of microenterprises via a Rural Microloan Revolving Fund, and to provide necessary training and technical assistance to microloan borrowers and microentrepreneurs. MDOs seeking to participate must demonstrate experience in managing Revolving Loan Funds or have received pertinent education and training. They can also qualify by showing active and successful participation as an intermediary lender under the SBA Microloan Program or similar programs. The program offers grants up to $205,000 annually for technical assistance to rural micro-entrepreneurs, requiring at least 15% matching funds from the grantee. Additionally, loans ranging from $50,000 to $500,000 are available for the establishment of a Rural Microloan Revolving Fund, with a total aggregate debt cap of $2.5 million. Loan terms to MDOs include a maximum of 20 years with a two-year payment deferral and a requirement to establish a loan loss reserve fund. Loans to ultimate recipients can go up to $50,000, must have a fixed interest rate, and are limited to covering 75 percent of project costs. Funds can be utilized for a variety of business activities including working capital, debt refinancing, purchasing equipment and supplies, and real estate improvements.