We are committed to helping improve the economy and quality of life in rural America.
The grant program aims to support the startup and growth of microenterprises in rural areas by providing loans and grants to Microenterprise Development Organizations (MDOs). Its guiding principles include enabling MDOs to establish a Rural Microloan Revolving Fund and offering training and technical assistance to microloan borrowers and micro-entrepreneurs. The program specifies that eligible MDOs must demonstrate experience in managing a Revolving Loan Fund, certification in microenterprise development training, or successful participation as an intermediary lender in similar programs. Funding available 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 for establishing a Rural Microloan Revolving Fund, with a total aggregate debt cap of $2.5 million. The loans to MDOs have a maximum term of 20 years, include a two-year payment deferral, and require the establishment of a loan loss reserve fund. Loans to ultimate recipients can go up to $50,000 with a fixed interest rate, and are limited to 75 percent of project cost. These funds can be used for various qualified business activities and expenses.