Rural Microentrepreneur Assistance Program

Provide rural microentrepreneurs with the skills necessary to establish new rural microenterprises and to provide continuing technical and financial assistance related to the successful operation of rural microenterprises. (1) Make direct loans to Mi

Loans to Microenterprise Development Organizations (MDO's) for the purpose of capitalizing microloan revolving funds to provide fixed interest rate business loans of $50,000 or less to microentrepreneurs as defined for startup and growing rural microenterprises. The maximum loan amount an MDO may borrower under this program will not exceed $500,000. Grants will be used to provide training, operational support, business planning, market development assistance, other related services to rural microentrepreneurs, and to fund other such appropriate projects and activities. Any MDO that receives a loan under this program is eligible for a grant to assist microentrepreneurs who have received or are seeking a microloan from an MDO. These grants are known as technical assistance (TA) grants and may be used by an MDO to provide marketing, management, and other technical assistance to microentrepreneurs. TA grants will provide assistance specifically tailored to the needs of one or more microentrepreneurs. TA grants will be not more than the lesser of 25 percent of the total outstanding balance of microloans or $100,000.

To be eligible to apply for Microlender status under the Rural Microentrepreneur Assistance Program, an applicant must be a non-profit entity, an Indian tribe, or a public institution of higher education. Applicants must be at least 51 percent controlled by persons who are either (i) citizens of the United States, the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, or American Samoa; or (ii) legally admitted permanent residents residing in the U.S. The applicant or owner must not have an outstanding judgment, be delinquent on any Federal debt or debarred from receiving Federal assistance.

Microentrepreneur is defined as an owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or as determined by the Secretary. All microentrepreneurs must be located in a rural area.

Loans to MDO's for the purpose of capitalizing microloan revolving funds to provide fixed interest rate business loans of $50,000 or less to microentrepreneurs as defined for startup and growing rural microenterprises. The maximum loan amount an MDO may borrower under this program will not exceed $500,000. Grants will be used to provide training, operational support, business planning, market development assistance, other related services to rural microentrepreneurs, and to fund other such appropriate projects and activities. These grants are known as technical assistance (TA) grants and may be used by an MDO to provide marketing, management, and other technical assistance to microentrepreneurs. TA grants will provide assistance specifically tailored to the needs of one or more microentrepreneurs. TA grants will be not more than the lesser of 25 percent of the total outstanding balance of microloans or $100,000.

For the Rural Microentrepreneur Assistance Program: Grant funds will be provided on a reimbursement basis. MDOs must make one or more microloans within 30 days of any disbursement it receives. MDOs may receive additional disbursements no more than quarterly

For the Rural Microentrepreneur Assistance Program, Rural Development (RD) personnel will review, score, and rank applications. It is anticipated that this will take place on a quarterly basis based on published evaluation criteria. Funding recommendations will be forwarded to the Administrator, Rural Business and Cooperative Service for final awards. The National Office will transfer funds to the appropriate State office for obligation of successful awards. Unsuccessful applicants will be notified.

Adverse actions made on applications from MDOs are appealable pursuant to 7 CFR part 11.