Business Development

The RBEG program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses help fund business incubators, and help fund employment related adult education programs. To assist with business development, RBEGs may fund a broad array of activities.

Eligible Recipients:
Rural public entities (towns, communities, State agencies, and authorities), Indian tribes and rural private non-profit corporations are eligible to apply for funding. At least 51 percent of the outstanding interest in any project must have membership or be owned by U.S. citizens or resident aliens.

Eligible Projects:
The RBEG program is a broad-based program that reaches to the core of rural development in a number of ways. Examples of eligible fund use include:

• Acquisition or development of land, easements, or rights of way;
• Construction, conversion, renovation of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities;
• Pollution control and abatement;
• Capitalization of revolving loan funds including funds that will make loans for start ups and working capital;
• Training and technical assistance;
• Distance adult learning for job training and advancement;
• Rural transportation improvement; and
• Project planning.

Any project funded under the RBEG program should benefit small and emerging private businesses in rural areas. Small and emerging private businesses are those that will employ 50 or fewer new employees and have less than $1 million in projected gross revenues.

Funding Source:
USDA Rural Development

Funding Amount:
$10,000 to $500,000

Deadline:
Recurring

Contact:
USDA Rural Development State Office
441 South Salina St.
Suite 357
Syracuse, NY 13202
315-477-6400
Fax: 315-477-6438

More Information:
http://www.rd.usda.gov/programs-services/intermediary-relending-program

The purpose of the IRP program is to alleviate poverty and increase economic activity and employment in rural communities. Under the IRP program, loans are provided to local organizations (intermediaries) for the establishment of revolving loan funds. These revolving loan funds are used to assist with financing business and economic development activity to create or retain jobs in disadvantaged and remote communities. Intermediaries are encouraged to work in concert with State and regional strategies, and in partnership with other public and private organizations that can provide complimentary resources.

Eligible Recipients:
Private non-profit corporations, public agencies, Indian groups, and cooperatives with at least 51 percent rural membership aimed at increasing income for producer members or purchasing power for consumer members may apply for intermediary lender status.

Eligible Projects:
Some examples of eligible projects are:

• The acquisition, construction, conversion, enlargement, or repair of a business or business facility, particularly when jobs will be created or retained.
• The purchase or development of land (easements, rights of way, buildings, facilities, leases, materials).
• To purchase equipment, leasehold improvements, machinery, supplies, start-up costs and working capital, pollution control and abatement, transportation services, feasibility studies, hotels, motels, B&Bs, and convention centers.

Funding Source:
USDA Rural Development

Funding Amount:
Varies; $250,000 to $15 million

Deadline:
Recurring

Contact:
USDA Rural Development State Office
441 South Salina St.
Suite 357
Syracuse, NY 13202
315-477-6400
Fax: 315-477-6438

More Information:
http://www.rd.usda.gov/programs-services/intermediary-relending-program

The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits.

Eligible Recipients:
A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or another Federally recognized tribal group; a public body; or an individual. A borrower must be engaged in or proposing to engage in a business that will:

• Provide employment;
• Improve the economic or environmental climate;
• Promote the conservation, development, and use of water for aquaculture; or
• Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems.

Eligible Projects:

• Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities.
• Business conversion, enlargement, repair, modernization, or development.
• Purchase and development of land, easements, rights-of-way, buildings, or facilities.
• Purchase of equipment, leasehold improvements, machinery, supplies, or inventory.
  

Funding Source:
USDA Rural Development

Funding Amount:
Loan must not exceed 25 million; some exceptions may be granted

Deadline:
Recurring

Contact:
USDA Rural Development State Office
441 South Salina St.
Suite 357
Syracuse, NY 13202
315-477-6400
Fax: 315-477-6438

More Information:
https://www.rd.usda.gov/programs-services/business-industry-loan-guarantees

The REDLG program provides funding to rural projects through local utility organizations. Under the REDLoan program, USDA provides zero-interest loans to local utilities which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. Under the REDGrant program, USDA provides grant funds to local utility organizations which use the funding to establish revolving loan funds for projects that will create or retain rural jobs.

Eligible Recipients:
To receive funding under the REDLG program an entity must:

• Have borrowed and repaid or prepaid an insured, direct, or guaranteed loan received under the Rural Electrification Act; or
• Be a not-for-profit utility that is eligible to receive assistance from the Rural Development Electric or Telecommunication Program; or
• Be a current Rural Development Electric or Telecommunication Programs Borrower.

Eligible Projects:
REDLG grantees and borrowers pass the funding on to eligible projects. Examples of eligible projects include:

• Capitalization of revolving loan funds,
• Technical assistance in conjunction with projects funded under a zero interest REDLoan,
• Business Incubators,
• Community Development Assistance to non-profits and public bodies, and
• Facilities and equipment for education and training for rural residents to facilitate economic development.

Funding Source:
USDA Rural Development

Funding Amount:
Up to $740,000 for loans
Up to $300,000 for grants

Deadline:
Recurring

Contact:
USDA Rural Development State Office
441 South Salina St.
Suite 357
Syracuse, NY 13202
315-477-6400
Fax: 315-477-6438

More Information:
http://www.rd.usda.gov/programs-services/rural-economic-development-loan-grant-program