Rural Business Opportunity Grants 

• Promote economic development that is sustainable over the long term without continued need for external support.
• Improve the quality as well as the quantity of economic development activity.
• Act as a catalyst by providing critical investments.
• Serve as examples of "best practices" that merit implementation in rural communities in similar circumstances.

Eligible rural areas exclude any area that is within the boundaries of a city with a population in excess of 10,000 inhabitants, according to the latest decennial census.

Eligible Applicants – RBOG grant applicants can be public bodies, nonprofit corporations, Indian tribes on Federal or State reservations and other Federally recognized tribal groups, or cooperatives composed primarily of rural residents that conduct activities for the benefit of the members.

Use of Grant Funds – Grants will be used to provide technical assistance for business development and economic development planning. This includes identifying and analyzing business opportunities including export markets, completing feasibility and business plan studies, conducting training and technical assistance for rural managers and entrepreneurs, establishing business support centers, conducting economic development planning, and providing leadership training.

Limitations – Projects are expected to be completed within 2 full years. For longer duration projects the initial grant will only fund the project for one year and does not assure additional funding in subsequent years. Proposals must show how the project will result in actual economic development in the project area. The applicant should demonstrate how the project will be consistent with local and area-wide strategic plans and the USDA Rural Development State Strategic Plan. Costs cannot be incurred prior to the approval of the grant or to duplicate current services. Businesses assisted must be at least 51% owned by US citizens or persons legally admitted for permanent residency in the US. The grants cannot be used to finance real estate development or buildings.

Amount of Grants – A grant may be considered for the amount needed to assist in the completion of the proposed project within 2 years. Funding is expected to be limited and very competitive. Additional priority is given to projects where the RBOG grant will fund less than the entire cost of the project.

Applications – Applications are filed on Standard Form 424.1 "Application For Federal Assistance (For Nonconstruction)". The application must include a written narrative that provides detail on the project, the area it will serve, businesses to be assisted, need for the project, the applicant’s demonstrated capability and experience in providing the proposed experience, and other factors that allow the Agency to evaluate the proposal. The applicant must propose a method by which the effectiveness of the project will be evaluated and how it will serve as a "best practice" for other rural communities. The application should be filed with the local USDA Rural Development office. The Agency will review the application for eligibility and completeness and determine a priority score for the project. If funds are available for the application Rural Development will provide guidance to the applicant regarding requirements for administration of the grant.

Other – Applications and more complete information about the RBOG program can be obtained by contacting your local USDA Rural Development office.  For more information on this program you can also contact the Rural Development Specialist covering the county where the business will be located.  Application forms can be obtained at any Rural Development office or on line through the USDA eForms website .