Rural Business Development Grant

To promote sustainable economic development and facilitate the development of small and emerging private business, industry, and related employment for improving the economy in rural communities.

Rural communities and small and emerging private business enterprises which will employ 50 or less new employees and have less than $1.0 million in projected gross revenue. Government entities, private nonprofit corporations, and Federally recognized Indian tribes that receive the grant to assist a business type operation. Grants are not made directly to a business.

Applicants eligible for RBDG grants are government entities, Indian tribes or nonprofit corporations serving rural areas such as States, counties, cities, townships, and incorporated towns and villages, boroughs, authorities, districts and Indian tribes on Federal and State reservations which will serve rural areas. Rural area for this program is defined as a city, town, or unincorporated area that has a population of 50,000 inhabitants or less, other than an urbanized area immediately adjacent to a city, town, or unincorporated area that has a population in excess of 50,000 inhabitants.

Rural communities and small and emerging private business enterprises which will employ 50 or less new employees and have less than $1.0 million in projected gross revenue. Government entities, private nonprofit corporations, and Federally recognized Indian tribes that receive the grant to assist a business type operation. Grants are not made directly to a business.

Evidence of legal capacity, economic feasibility, and financial responsibility relative to the activity for which assistance is requested.

Rural business development grants (RBDG) provide Business opportunity, Business enterprise . Funds may be used to assist in the economic development of rural areas by providing technical assistance, training, and planning for businesses. Business enterprise type grants may be used to create, expand, or operate rural distance learning networks or programs that provide educational or job training instruction related to potential employment or job advancement for adult students; develop, construct or acquisition land, buildings, plants, equipment, access streets and roads, parking areas, utility extensions, necessary water supply and waste disposal facilities; refinancing; services and fees; and to establish a revolving loan fund.

Generally, 90 to 120 days, subject to the availability of funding. Funds are allocated to States on rural population and percent of nonmetropolitan per capita income. On occasion, the allocation to States may not be practical due to funding or administrative constraints. In these cases, funds will be controlled by the National Office.

An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance.

Application Form SF-424 is filed at the Rural Development local office. The standard application forms as furnished by the Federal agency must be used for this program.

Projects selected for funding should, as much as practical, adhere to the following priorities: (1) Projects which will be located in communities having a large portion of their population with low incomes; (2) projects which will save existing jobs; (3) projects which will create jobs; and (4) projects located in areas with high unemployment rate.

After the application has been reviewed by the RD local office, it is forwarded to the RD State Office for review and processing instructions. Following approval by the State Office, funds are made available to the local office for final delivery. Notification of awards must be made to the designated State Central Information Reception Agency.

A NOSA will be published annually to provide deadline to submit completed applications to you local USDA Office.

Adverse actions by RBS in connection with this program may be appealed by contacting the Area Supervisor of the USDA National Appeals Division. Appeals will be handled in accordance with 7 CFR 1900-B and 7 CFR part 11.