Rural Microentrepreneur Assistance Program

The Rural Microentrepreneur Assistance Program (RMAP) provides direct loans, technical assistance grants, and technical assistance-only grants to Microenterprise Development Organizations (MDOs) to support the development and ongoing success of rural microentrepreneurs and microenterprises in rural areas.

Program Details


Eligibility:


Applicants must meet the definition of an MDO:

  • Non-profit entity; or
  • Federally recognized Indian tribe; or
  • A public institution of higher education
  • Citizens of the U.S. and its territories
  • Legal authority and responsibility

For potential microlenders, the applicant must also provide evidence that it:

  • Has demonstrated experience in management of a revolving loan fund; or
  • Certifies that it is, or its employees, have received education and training from a qualified microenterprise development training entity so that the applicant has the capacity to manage such a revolving loan fund; or
  • Is actively and successfully participating as an intermediary lender in good standing under the U.S. Small Business Administration (SBA) Microloan Program or other similar loan programs.

Microenterprise/Microentrepreneur Eligibility:

  • Business located in a rural area that employs not more than 10 FTEsand is seeking a loan of not more than $50,000
  • A sole proprietorship/business entity located in a rural area
  • Inadequate credit elsewhere


Uses

Microloan Purposes:

  • Working capital
  • Purchase of furniture, fixtures, supplies, inventory, or equipment
  • Debt refinancing
  • Purchase or lease of real estate that is already improved and will be used for the location of the subject business only, provided no demolition or construction will be accomplished with program funding. Neither interior decorating, nor the affixing of chattel to walls, floors, or ceilings are considered to be demolition or construction

Grant Purposes:

  • T/A Grant - provide technical assistance and training to eligible microentrepreneurs and microenterprises
  • T/A-only Grant - provide assistance to eligible MDOs that seek to provide business-based technical assistance and training to eligible microentrepreneurs and microenterprises (Entities receiving microlending TA Grants will not be eligible to apply for TA-Only grants.)


Limits

Loans to Microlenders: Up to $500,000

Loans to Microenterprise/Microentrepreneur: Up to $50,000

Technical Assistance Grants to microlenders participating in RMAP with an active rural microloan revolving fund or applying to participate under RMAP: Grant amount will be made based on a percentage of the outstanding microloans owned to the microlender under this program (not to exceed 25%)

Technical Assistance-Only Grants: Not to exceed $130,000 (FY2010)


Other:

Rural area is defined as 50,000 or less.


More Information and How to Apply

For more information, contact our State Office at (785) 271-2700.