We are committed to helping improve the economy and quality of life in rural America.
This grant program supports Microenterprise Development Organizations (MDOs) in their efforts to assist microenterprises with startup and growth initiatives through the establishment of a Rural Microloan Revolving Fund. It aims to provide both loans and grants for this purpose, including technical assistance to microloan borrowers and micro entrepreneurs. Specifically, the program offers grants up to $205,000 annually for technical assistance to rural entrepreneurs, requiring at least 15% matching funds from applicants. Additionally, it provides loans ranging from $50,000 to $500,000 to establish the Revolving Fund, with a total aggregate debt limit of $2.5 million per MDO. Loan terms offered can extend up to 20 years, include a two-year payment deferral, and require the establishment of a loan loss reserve fund. The funds distributed under this program can be used for various purposes including working capital, debt refinancing, purchasing equipment and supplies, and improving real estate. Applicants must demonstrate experience in managing a Revolving Loan Fund or have received specific training in microenterprise development. They may also qualify if they are deemed an intermediary lender in good standing under the U.S. Small Business Administration (SBA) Microloan Program or similar loan programs.