USDA invests $5.8 million to support small businesses

USDA invests $5.8 million to support small businesses

Rural Microentrepreneur Assistance Program helps small, rural businesses compete.

USDA awarded $5.8 million in grants and loans to support rural economic development projects and create jobs in 11 states through its Rural Microentrepreneur Assistance Program (RMAP) and Intermediary Relending Program (IRP).

"This funding will help small businesses access capital that they would not have had otherwise, generating new economic activity in rural communities," said USDA Rural Business-Cooperative Service Administrator Sam Rikkers. "USDA is proud to support small, rural businesses so they can compete in the marketplace."

Rural Microentrepreneur Assistance Program

USDA awarded $5.8 million in grants and loans to support rural economic development projects. (Photo: Nerthuz/Thinkstock)

RMAP helps very small, rural businesses compete in the larger economy by giving microenterprises access to capital to grow their businesses. Nonprofit organizations, federally-recognized tribes, public institutions of higher learning and businesses with 10 or fewer full-time employees are eligible to apply for RMAP. Projects must be in a rural area outside a city or town with a population of fewer than 50,000 residents, and funding may be used for working capital, debt refinancing and for purchasing equipment, supplies and real estate.

The following is a list of recipients that have been selected to receive RMAP grants and loans. The funding is contingent upon the recipient meeting the terms of the grant or loan agreement.

-Maine-Sunrise County Economic Council: $500,000 loan; $100,000 grant

-Michigan-Keweenaw Bay Ojibwa Housing & Community Development Corporation: $500,000 loan; $105,000 grant

-North Carolina-Mountain BizCapital, Inc.: $500,000 loan

-Pennsylvania-Rural Business Innovation Corporation: $100,000 loan; $25,000 grant

-Vermont-Northern Community Investment Corporation: $500,000 loan; $105,000 grant

Intermediary Relending Program

IRP provides loans at a 1% interest rate to local intermediaries that relend to businesses in support of economic development projects. Nonprofit organizations, cooperatives, federally-recognized tribes and public agencies are eligible to apply for this program. The ultimate recipients are individuals or public or private organizations in rural communities with populations of fewer than 50,000. Lenders must also be eligible to operate a revolving loan fund, have a record of successfully assisting rural businesses and communities and have the ability to repay the loan.

The following is a list of recipients that have been selected to receive IRP loans. The funding is contingent upon the recipient meeting the terms of the loan agreement.

-Montana-Headwaters RC&D Area, Inc.: $750,000

-Nebraska-Rural Investment Corporation: $210,350

-New York-The Delaware County LDC: $420,573

-Pennsylvania-Titusville Redevelopment Authority: $500,000

Source: USDA

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