We are committed to helping improve the economy and quality of life in rural America.
This program aims to support the growth and startup of microenterprises through providing loans and grants to Microenterprise Development Organizations (MDOs). It focuses on fostering rural microenterprise by enabling a Rural Microloan Revolving Fund and offering training and technical assistance to borrowers and entrepreneurs. The grants facilitate technical support for rural micro-entrepreneurs, with a yearly cap up to $205,000, requiring a minimum of 15 percent matching funds. Loans ranging from $50,000 to $500,000 are designed for establishing a Rural Microloan Revolving Fund under the management of MDOs, with a total debt limit of $2.5 million. The program sets specific expectations for the Microenterprise Development Organizations regarding experience or training in managing revolving loan funds and stipulates terms for the loans, including a maximum term of 20 years, a two-year payment deferral, and the establishment of a loan loss reserve fund. Funds can be used for various business activities such as working capital, debt refinancing, purchasing equipment and supplies, and improving real estate.