USDA Utah Rural Development

Rural Business and Economic Development Programs

Business & Industry (B&I) Guaranteed Loan Program

  • Rural lenders utilize the Guaranteed Business and Industry loan program to guarantee loans to good quality businesses that support a diversified economic base and provide or save good quality jobs in rural areas.  RBS will only guarantee good quality loans.  RBS will not guarantee marginal or substandard loans.
  • The Guaranteed B&I loan program allows lenders to make more larger sized loans to sound rural businesses with longer loan terms and lower interest rates than would otherwise be available.
  • Guaranteed Business and Industry loan requests are submitted to RBS by a commercial lender for a Federal guarantee on the lender's loan.
  • RBS can guarantee up to 80% of a loan made by a bank or other approved lender. RBS can consider guarantees on loans up to $25,000,000.  However, the percentage of guarantee will decrease depending on the size of the loan to a maximum 70% guarantee for loans between $5,000,000-$10,000,000, or a maximum 60% guarantee for loans between $10,000,000-$25,000,000.
  • Loans must be fully secured.  The discounted collateral value of all security must be sufficient to fully secure the loan request.
  • Businesses must generate sufficient revenues to service all business debts.
  • Established businesses must have a minimum 10% tangible net worth to qualify.  New or startup businesses must have a minimum 20% tangible net worth to qualify.
  • Some ineligible uses of Guaranteed B&I loan proceeds include lines of credit, reimbursing owners, partners, stockholders or beneficiaries of the applicant, and agricultural production, and owner-occupied housing.
  • Businesses financed with a Guaranteed B&I loan must be located in a rural area. Rural areas for this program are defined as communities with a population of 50,000 or less, and are not located adjacent to urban areas of more than 50,000 population.

Intermediary Relending Program (IRP)

  • Revolving loan program lenders (intermediaries) utilize the IRP loan program to obtain low interest capital to make loans up to $250,000 to rural businesses.
  • Intermediaries can obtain a IRP loan at a low interest rate of 1%, with a maximum term of 30 years.  Intermediaries can borrow a maximum of $15 million in IRP loan funds in annual increments of up to $1,000,000.
  • RBS can consider a maximum $750,000 loan to an eligible intermediary relender, at a maximum term of 30 years, and at a interest rate of 1%.
  • Qualified intermediaries may include public bodies, non-profit corporations, cooperatives, or Federally recognized Indian tribes.  RBS lends funds to qualified intermediaries, which in turn provide loans to rural businesses.
  • Smaller sized Rural Businesses unable to qualify for bank financing may receive moderate sized loans (typically no more than $150,000, but may go up to $250,000 in some cases) from a qualified intermediary, funded by RBS through the Intermediary Relending Program (IRP).
  • Loans to businesses may generally be used for infrastructure, asset acquisitions, working capital, startup expenses, and lines of credit.
  • Eligible rural areas for this program are defined as communities with a population of 25,000 or less, and ones not located adjacent to communities of more than 25,000 population.
  • Intermediary Relending Program loan requests are funded quarterly on a nationally competitive basis.
  • Utah Technical Finance Corporation, Mountain West Small Buisiness Finance and Utah Business Lending Corporation are three qualified IRP lenders for Utah.  Contact persons and phone numbers for these IRP lenders are as follows:

                 Mr. Scott Davis with Mountain West Small Buisiness Finance at (801) 474-3232.
                 Mr. Steve Grizzell with the Utah Technical Finance Corporation at (801) 741-4215.
                 Mr. Gordon Holt with the Utah Business Lending Corporation at (801) 598-5628.

Rural Economic Development Loan And Grant (REDLG) Program

  • Promising small to moderate sized rural businesses may also benefit from a loan funded by RBS through the Rural Economic Development Loan and Grant (REDLG) program. The REDLG program is administered through a limited number of eligible electric and telecommunications companies who utilize REDLG funds to make zero interest or low interest loans to rural businesses.
  • Rural areas for this program are typically communities of less than 25,000 population, and not immediately adjacent to a community with a population of 25,000 or more.
  • Eligible electric and telecommunications companies can utilize the Rural Economic Development Loan program to fund up to a $750,000, zero interest loan to a viable rural business.  The maximum loan term is ten years.
  • Rural Economic Development Loans are project specific, and are funded quarterly on a nationally competitive basis.
  • An eligible electric or telecommunications company is the applicant to RBS for a Rural Economic Development Loan (REDL).  Once funded, the eligible electric or telecommunications company makes a 'mirror' loan to the viable rural business indicated in the application for REDL funds at the same rates and terms granted by RBS to the electric or telecommunications company.
  • An eligible electric or telecommunications company is the applicant to RBS for a Rural Economic Development Grant (REDG).  Once funded, the eligible electric or telecommunications company establishes and operates a revolving loan fund. Promising smaller sized rural businesses may be able to obtain a modest sized, low interest loan from the revolving loan fund.
  • Rural Economic Development Grants may be used by eligible electric or telecommunications companies to establish a revolving loan program operated at the local level by the utility. The maximum grant to establish a revolving loan program is $300,000. Rural businesses may then obtain business loans from the revolving loan fund at competitive interest rates.
  • Rural Economic Development Grants (REDG) are funded quarterly on a nationally competitive basis.
  • An eligible electric or telecommunications company is the applicant to RBS for a Rural Economic Development Grant (REDG).  Once funded, the eligible electric or telecommunications company establishes and operates a revolving loan fund. Promising smaller sized rural businesses may be able to obtain a modest sized, low interest loan from the revolving loan fund.
  • The Rural Economic Development Loans and Grant (REDLG) program is only available to existing or previous Rural Utility Service (RUS) electric borrowers, or telecommunications businesses who currently have a loan with RUS.
  • Eligible REDLG electric companies in Utah are as follows:

                 Dixie-Escalante Rural Electric Association (REA)
                 HC 76, Box 95
                 Beryl, Utah 84714
                 ATTN: CHERY HULET (435) 439-5311

                 Flowell Electric Association
                 495 North 3200 West
                 Fillmore, Utah 84631
                 ATTN: DURAND ROBISON (435) 743-6214

                 Garkane Power Association
                 120 West
                 Loa, Utah 84747
                 ATTN: STAN CHAPPELL 1-800-747-5403

                 Moon Lake Electric Association
                 P.O. Box 278
                 Roosevelt, Utah 84066
                 ATTN: RUSSELL COWAN (435) 738-2268

  • Eligible REDLG telecommunications companies in Utah are as follows:

                 Beehive Telephone Company, Inc.
                 125 Base Drive
                 Wendover, UT 84083
                 ATTN:  Arthur W. Brothers, Manager (435) 234-0111

                 Central Utah Telephone, Inc.
                 P.O. Box 7
                 Fairview, UT 84629
                 ATTN: I. BRANCH COX, Manager (435) 427-3331

                 Uintah Basin Telephone Association
                 P.O. Box 398
                 Roosevelt, UT 84066
                 ATTN: BRUCE H. TODD, General Manager/CEO (435) 646-5011

Rural Business Enterprise Grant (RBEG) Program

  • Rural public bodies, private non-profit organizations, and Federally recognized Native American tribes may obtain a Rural Business Enterprise Grant (RBEG) to facilitate the development of multiple small and emerging rural private businesses.
  • RBEG requests typically do not exceed $100,000.
  • RBEG funds may be used by rural public bodies, private non-profit organizations, or Federally recognized Native American tribes to provide technical assistance to small and emerging businesses (business plans, feasibility studies, marketing studies, economic development training, etc.), purchase machinery or equipment to lease to small and emerging businesses, construct business incubators, or buildings that will be leased to small and emerging businesses.
  • Rural public bodies, private non-profit organizations, and Federally recognized Native American tribes may also utilize RBEG funds to establish a revolving loan fund. Small and emerging rural businesses may obtain a modest sized business loan from the revolving loan fund.
  • A small and emerging business is generally defined as a business with fewer than 50 new employees, and less than $1,000,000 in gross revenues.
  • Rural Business Enterprise Grant requests are funded on a state and national competitive basis during multiple funding cycles throughout the year.
  • Eligible entities as well as businesses assisted with a RBEG must be located in and serve a rural area.  Enterprise Rural areas for this program are defined as communities with a population of 50,000 or less, and are not located adjacent to urban areas of more than 50,000 population.
  • RBEG requests are typically considered for funding in December and June of each year.

Rural Business Opportunity Grant (RBOG)

  • Rural Business Opportunity Grants (RBOG) may be utilized by rural public bodies, non-profit organizations, cooperatives, and Federally recognized Native American tribes to promote sustainable economic growth in economically depressed rural areas.
  • RBOG funds may only be used by rural public bodies, non-profit organizations, cooperatives, or Federally recognized Native American tribes to provide technical assistance (business plans, feasibility studies, marketing studies, economic development training, etc.).  RBOG proceeds may only be used for technical assistance, training, and planning activities that will have a measurable and reasonable chance of improving the economic conditions of depressed rural areas.
  • RBOG requests cannot exceed $50,000 for single state projects, or at $150,000 for multi-state projects.
  • Rural Business Opportunity Grant requests are funded on a national competitive basis during multiple funding cycles throughout the year.
  • Rural Business Opportunity Grant requests are funded on a national competitive basis during multiple funding cycles throughout the year.
  • Rural areas for this program are defined as communities with a population of 50,000 or less, and are not located adjacent to urban areas of more than 50,000 population.

Value-Added Agricultural Producer Grant (VAPG) Program

  • Value Added Producer Grant (VAPG) funds may be utilized by eligible independent producers of agricultural commodities, agricultural producer groups, farmer and rancher cooperatives, and majority-owned producer-based business ventures to plan or implement sales of agricultural products into emerging markets.
  • Emerging markets include selling a new product into an old market, or selling an old product into a new market.
  • For planning requests, grant funds may be used for, but are not limited to, hiring personnel including lawyers, accountants, and other qualified consultants associated with the following purposes:

    1. Conducting a feasibility analysis of a proposed value-added venture to help determine the potential success of the venture.
    2. Develop a business plan that provides comprehensive details on the management, planning, and other operational aspects of a proposed venture.
    3. Develop a marketing plan for the proposed value-added product or products including the identification of a market window, the identification of potential buyers, a description of the distribution system, and possible promotional campaigns.
    4. Obtain legal advice and assistance related to the proposed venture.


  • For working capital (implementation) requests, grant funds may be used for working capital to fund operations.  Working capital funds can be used for, but are not limited to:

    1. Hiring an attorney to provide legal advice and draft legal documents.
    2. Hiring a Certified Public Accountant.
    3. Paying salaries.
    4. Paying utilities and other operating costs.
    5. Finance inventories.
    6. Purchase office equipment, computers and supplies.


  • Grant funds are awarded annually on a nationally competitive basis.
  • VAPG awards are limited to 50% of the cost of the project, up to a maximum of $100,000 for planning grant and $300,00 for working capital grant.  Non-Federal, matching funds, or in-kind contributions may be utilized by the applicant for the applicant's 50% project cost contribution.
  • There is no rural area definition for this program.

Rural Cooperative Development Grant (RCDG)

  • Rural Cooperative Development Grant (RCDG) funds may be utilized by selected non-profit corporations or institutions of higher education to establish and operate centers for rural cooperative development which will facilitate the development of new rural cooperative, value-added processing, and rural businesses that create or retain jobs in rural areas.
  • Selected non-profit corporations or institutions of higher education must provide at least a 25% matching contribution with private funds or in-kind contributions.
  • Grant funds for up to 75% of the relevant project cost may be used for, but are not limited to, the following purposes useful to individuals, cooperatives, small businesses, and other similar entities in rural areas served by the center for the purpose of cooperative development:
    1. Research, feasibility, environmental and other pertinent studies.
    2. Collection, interpretation, and dissemination of facts, technical knowledge, or other information.
    3. Provide training and technical assistance.
    4. Provide loans and grant assistance.
  • Grant funds cannot be used for the following:
    1. Pay more than 75% of the project cost.
    2. Administrative costs or packaging fees.
    3. Building construction or renovation.
    4. Purchase real estate or vehicles.
    5. Political activities.
    6. Provide assistance to private business enterprises which are owned by non-United States citizens or legal residents.
  • Grant funds will be awarded annually on a nationally competitive basis.
  • Rural areas for this program are defined as communities with a population of 50,000 or less, and are not located adjacent to urban areas of more than 50,000 population.

Rural Energy Systems & Energy Efficiency Improvements Program (REEP)

  • Agricultural producers and small rural businesses with financial need can utilize the rural energy systems or energy efficiency improvements program.   Funding is available in the form of grants, guaranteed loans, and combined guaranteed loan and grant applications.  For energy systems (solar, wind, geothermal, anaerobic digester, etc.), the maximum grant request is $500,000 or up to $250,000 to make energy efficiency improvements to their existing operations.
  • Rural Energy Systems or Energy Efficiency Improvement grants are limited to 25% of eligible project costs.  The applicant must provide a minimum 75% of project costs in non-federal matching funds.  In-kind contributions cannot be considered toward matching funds.  In-kind can include up to 10% 3rd party contributions.
  • This program cannot be used to fund research and development (R&D projects, or finance unproven technologies.
  • Small businesses for this program must meet the Small Business Administration (SBA) size standards.
  • Rural areas for this program are communities of less than 50,000 population, and not immediately adjacent to a community with a population of 50,000 or more.

Rural Community Development Initiative (RCDI)

  • Qualified intermediary organizations can obtain a minimum $50,000 or up to a maximum $1,000,000 in matching RCDI grant assistance to increase the intermediary's capacity to provide economic development technical assistance to low income community based non-profit organizations, low-income community public entities, or federally recognized tribes for the purpose of developing economic development projects in low income rural areas.
  • RCDI grants are limited to 50% of project costs.  The RCDI applicant must provide a minimum 50% of project costs in non federal matching funds.  In-kind contributions cannot be considered toward matching funds.
  • Rural areas for this program are communities of less than 50,000 population, and not immediately adjacent to a community with a population of 50,000 or more.
  • Low income communities must be at or below 80% of the state or national Median Household Income (MHI).
  • Qualified intermediaries for this program include private nonprofit, public, or tribal organizations that provide financial and technical assistance to multiple recipients.
  • Intermediaries must have been organized for a minimum of three years before applying for RCDI assistance.
  • RCDI requests are typically considered for funding in May of each year.


Please contact RBS personnel at the State Office for more information, current funding cycles, current funding levels, and application requirements on any RBS programs:

Email: Richard.Carrig@ut.usda.gov


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