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Introduction
Rural Development administers Rural Business Enterprise Grants
(RBEG) to finance and facilitate development of small and emerging
private business enterprises in rural areas or cities up to 50,000
population with priority to applications for projects in open
country, rural communities and towns of 25,000 and smaller and
economically distressed communities. RBEG includes grants made to
third-party lenders to establish revolving loan programs.
Who is Eligible?
Eligibility is
limited to public bodies and private nonprofit corporations. Public
bodies include: incorporated towns and villages, boroughs,
townships, counties, states, authorities, districts, and Indian
tribes on Federal and State reservations and other federally
recognized Indian tribal groups in rural areas.
How Funds May be Used?
Funds may be used to finance and develop small and emerging private
business enterprises. Small and emerging private business
enterprises are defined as businesses with less than $1 million in
gross revenue; less than 50 new jobs being created as a result of
the project; and a business that has or will utilize technological
innovations and commercialization of new products that can be
produced or manufactured in a rural area.
Costs that may be paid from grant funds include the acquisition and
development of land, and the construction of buildings, plans,
equipment, access streets and roads, parking areas, utility and
service extensions, refinancing fees, technical assistance, startup
operating cash and working capital.
Limitations
Grants may not be used for:
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Production of agricultural products through growing, cultivating,
and harvesting either directly or through horizontally integrated
livestock operations except for commercial nurseries or timber
operations.
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Comprehensive area type planning.
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Loans by grantees when the rates, terms and charges for those loans
are not reasonable.
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Development of a proposal that may result in the transfer of jobs or
business activity from one area to another. This provision does not
prohibit establishment of a new branch or subsidiary.
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Development of a proposal which may result in an increase of goods,
materials, commodities, services, or facilities in an area when
there is not sufficient demand.
Applications will be considered without regard to race, color,
religion, sex, national origin, age, marital status, or physical or
mental handicap (provided applicants have the capacity to enter into
a legal contract of the members of the groups applying for
assistance). Opportunity to construct, develop and use the
facilities must be extended on the same basis.
Rural Business
Enterprise Grants (RBEG) and
Television Demonstration Grants
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