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Business Programs
Business and Industry
(B&I)
----Guaranteed Loan
Program
- helps create jobs and stimulates rural economies by providing financial backing for rural businesses
- guarantees up to 80 percent of a loan made by a commercial lender
- may be used for start-up working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing
- can be extended to loans made in rural areas, which includes all areas other than cities of more than 50,000 population
- creates and maintains employment
- improves the economic climate in rural communities
- expands the lending capability of private lenders in rural areas, helping them make and service quality loans that provide lasting community benefits
----Direct Loan Program
Program not currently funded.
Rural Economic Development Loans and Grants
- are available to any Rural Utilities Service electric or telecommunications borrower
- finance economic development and job creation projects in rural areas based on solid economic plans
- assist in developing rural areas from an economic standpoint, create new job opportunities, and help retain existing employment
- should substantially benefit areas having a population of less than 2,500 residents
----Rural Economic Development Loans
- zero-interest loans are made primarily to finance startup ventures and business expansion projects
----Rural Economic Development Grants
- are made to telephone and electric utilities to establish revolving loan programs operated at the local level by the utility. The revolving loan program facilitates rural development by providing needed capital
a) to nonprofit entities and municipal organizations to finance community facilities which promote job creation in rural areas,
b) for facilities which extend or improve medical care to rural residents, and
c) for facilities which promote education and training to enhance marketable jobs skills for rural residents
Rural Business Enterprise Grants
- help public bodies, nonprofit corporations, and Federally recognized Indian tribal groups finance and facilitate development of small and emerging private business enterprises
- are available in rural areas (this includes all areas other than cities of more than 50,000 people)
- can pay for the acquisition and development of land and the construction of buildings, plants, equipment, access streets and roads, parking areas, utility and service extensions, refinancing, and fees for professional services
- may pay for technical assistance and related training, startup costs and working capital, financial assistance to a third party, production of television programs targeted for rural residents, and for rural distance learning networks
Intermediary Relending Program Loans
- lends funds to intermediaries, which, in turn, provide loans to recipients who are developing business facilities or community development projects
- finance business facilities and community development projects
- are available in rural areas, including cities with a population of less than 25,000
- eligible intermediaries include public bodies, nonprofit corporations, Indian tribes, and cooperatives
Rural Business Opportunity Grants
Public bodies and eligible nonprofit corporations can apply for Rural Business Opportunity Grant funds to help provide technical assistance, training, and planning activities that improve economic conditions in rural areas. Applicants must be located in rural areas (this includes all areas other than cities of 50,000 people and their immediate adjacent urban and urbanizing areas.) A maximum of $50,000 per grant is authorized by the legislation. RBS is designing the program to promote sustainable economic development in rural communities with exceptional needs.