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Rural communities can receive assistance in promoting the development of
small businesses through the Rural Business Enterprise Grant (RBEG) program.
Grants are made to public bodies or not-for-profit organizations. Grantees use
the funds to promote the development of small private businesses, which are
defined as having 50 or fewer new employees and less than $1 million in
projected annual gross revenue. Rural communities include cities with up to
50,000 population and cannot be within the urbanized area of a larger city.
Eligible Applicants - RBEG grants are made to public bodies and
private not-for-profit corporations. Public bodies are States, counties, cities,
townships, incorporated towns and villages, boroughs, authorities, districts,
and federally recognized Indian Tribes.
Use Of Grant Funds - Funds can be used to acquire property such as
land, buildings, machinery or equipment which will be owned by the grantee, but
will be made available for use by the private business or businesses. Grantees
can also use funds to provide technical assistance to private business
enterprises, make loans for startup operating costs or working capital or to
establish a revolving loan fund. Reasonable fees for professional services
necessary for planning and development of the project and training in connection
with technical assistance can also be eligible uses of grant funds.
Limitations - Applicants and beneficiaries must have at least 51%
ownership or control by U.S. citizens or permanent residents. Use of funds for
planning must be associated with a specific project. Comprehensive area wide
planning is not eligible. Agricultural production is not an eligible type of
business to benefit from a grant, however processing or marketing services and
other related businesses that will benefit small farmers are eligible. There
must be some assurance that necessary funds from other sources will be
available.
Amount of Grants - The size of grants is restricted by the
availability of funds and the demand as demonstrated by the number of
applications filed. The amount available in New York is less that $1 million
annually. Smaller applications of $100,000 or less will receive somewhat higher
priority.
Applications
- Interested applicants file a preliminary application with the USDA-Rural
Development office serving their area. Rural Development will analyze
applications and determine their priority score based on the factors in the
program regulations. If funds appear to be available for an application the
applicant will be notified and requested to complete the full application.
Application forms and information about the program can be obtained from the
Rural Development office nearest you.
ARC Program Grants - Rural Development has agreed to administer grants
made by the Appalachian Regional Commission when the grant is for projects
eligible for agency assistance. These grants are administered under the
provisions of the Rural Business Enterprise Grant program, Rural Housing
Community Facilities Program or Rural Utility Water and Sewer program.
Other - All projects must comply with the National Historic
Preservation Act of 1966, the Uniform Relocation and Real Property Acquisition
Policies Act, Executive Order 11988, "Floodplain Management" and
Executive Order 11990, "Protection of Wetlands." Discrimination on the
basis of race, color, national origin, disability, handicap or age is
prohibited.
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