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USDA Rural Development makes grants under the Rural Business Enterprise Grants
(RBEG) Program to public bodies, private nonprofit corporations, and
Federally-recognized Indian Tribal groups to finance and facilitate development
of small and emerging private business enterprises located in any area other
than a city or town that has a population of greater than 50,000 inhabitants and
the urbanized area contiguous and adjacent to such a city or town. The public
bodies, private nonprofit corporations and federally recognized Indian tribes
receive the grant to assist a business. Grant funds do not go directly to the
business.
Eligibility is limited to public bodies, private nonprofit corporations,
and Federally-recognized Indian Tribal groups. Public bodies include
incorporated towns and villages, boroughs, townships, counties, States,
authorities, districts, Indian Tribes on Federal and State reservations, and
other Federally-recognized Indian Tribal groups in rural areas. The small and
emerging businesses to be assisted must have less than 50 new employees and less
than $1 million in gross annual revenues.
Funds are used for the financing or development of a small and emerging
business. Eligible uses are: Technical Assistance (providing assistance for
marketing studies, feasibility studies, business plans, training etc.) to small
and emerging businesses; purchasing machinery and equipment to lease to a small
and emerging business; creating a revolving loan fund (providing partial funding
as a loan to a small and emerging business for the purchase of equipment,
working capital, or real estate); or construct a building for a business
incubator for small and emerging businesses.
Grants cannot be used for agricultural production;
comprehensive area-wide planning; loans by grantees when the rates, terms, and
charges for those loans are not reasonable or would be for purposes not
eligible under RBEG regulations; development of a proposal that may result in
the transfer of jobs or business activity from one area to another, 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; programs operated by cable television
systems; or to fund part of a project that is dependent
on other funding (unless there is a firm commitment of the other funding to
ensure completion of the project).
For more information about the program, please
contact the USDA Rural
Development Area Office nearest you.
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