Rural Microentrepreneur Assistance Program - Vermont

From USDA: Rural Development (RD)

We are committed to helping improve the economy and quality of life in rural America.

Type of Support

Overview

This grant program aims to support microenterprise development by offering both loans and grants to Microenterprise Development Organizations (MDOs). Its primary goals include aiding the startup and growth of microenterprises through the establishment of a Rural Microloan Revolving Fund, and providing training and technical assistance for microloan borrowers and micro-entrepreneurs. The program focuses on rural areas with populations under 50,000, ensuring that projects serving these communities are eligible, even if the MDO’s headquarters or the lender is based in a larger city. Financial support includes grants up to $205,000 for technical assistance, with a required 15 percent match of funds, and loans ranging from $50,000 to $500,000 to create a Rural Microloan Revolving Fund, with a total debt cap of $2.5 million for any participating organization.

Eligibility

Organization's Location
USA
Program Location
VT
Organization Type
Nonprofits
Federally-recognized tribes
Institutions of higher education
Other
  • Businesses located in an eligible area
  • With 10 or fewer full-time employees
  • Experience in managing a Revolving Loan Fund required
  • Or certification of training in managing a Revolving Loan Fund from a qualified entity
  • Or demonstration of active and successful participation as an intermediary lender under the U.S. SBA Microloan Program or similar
  • Maximum loan term of 20 years
  • Two-year payment deferral required for loans
  • Must establish a loan loss reserve fund
  • Loan amounts up to $50,000
  • Fixed interest rate
  • Loans limited to 75 percent of project cost
  • Funds can be used for working capital, debt refinancing, purchasing equipment and supplies, improving real estate
up to 500k

Submission

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