USDA Rural Development is seeking applications to support the development and ongoing success of rural micro entrepreneurs and microenterprises. Funding is now available through USDA Rural Development’s Rural Micro entrepreneur Assistance Program (RMAP), which is authorized by the 2008 Farm Bill. This program has been established to fund, finance and facilitate microenterprise developments through loans to the micro lender to establish a Rural Microloan Revolving Fund and grants to fund technical assistance.
“USDA Rural Development strives to improve the overall quality of rural communities,” said Paco Valentin, USDA Rural Development Texas State Director. “By providing loans and grants to start-up businesses through the new Rural Micro entrepreneur Assistance Program, we can assist with the development of local rural businesses. These businesses will in turn benefit the community by creating job opportunities and providing needed goods and services to rural residents.”Loans ranging from $50,000 to $500,000 with fixed interest rates will be made available to micro lenders for startup and growing microenterprises. Grants will be available for micro lenders and microenterprise development organizations (MDOs) that provide technical assistance and training to micro entrepreneurs who have received or are seeking a microloan under this program. Technical assistance grants will not exceed $130,000 and will be made based on a percentage of the outstanding microloans owed to the micro lender under this program.
To eligible for this program, a MDO must be a non-profit entity, a federally recognized Indian tribe or a public institution of higher education. Additionally, the MDO must have legal authority and responsibility and must be citizens of the United States and its territories.
Applications will be accepted throughout the year and awarded on a quarterly basis. For fiscal year 2010, applications must be received by July 16, 2010. The total amount available in fiscal year 2010 is $45.1 million. Of this, $36.2 million will be available for loans, $7.6 million will be available for micro lender technical assistance grants, and $1.3 million will be available for technical assistance-only grants. To be eligible for a RMAP loan, a micro entrepreneur must be located in a rural area, employ less that 10 full time employees and be seeking $50,000 or less in business capital and/or be in need of business based technical assistance and training.
More information on how to apply for funding is available in the June 3 Federal Register, page 31413, http://edocket.access.gpo.gov/2010/pdf/2010-13380.pdf.
