Rural Business Enterprise Grants and Loans
This is a grant-only program of RDA used to support the development of small
emerging private business enterprises in rural areas. Small and emerging private
businesses would generally be ones that will employ 50 or less new employees and
have less than $1,000,000 in projected gross revenues.
These grants can be made to public bodies and private nonprofit corporations
that serve rural areas. Applications will be scored and ranked for funding based
on RDA established priorities related to population, economic conditions,
experience, commitment of business or industry to the location, substantial
commitment of non-feral funds to the project, and existence of certain unusual
conditions.
 | Acquisition and development of land, easements, and rights-of-way.
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| Construction, conversion, enlargement, repairs or modernization of of
buildings, plants, machinery, equipment, access streets and roads, parking
areas, utilities, and pollution control and abatement facilities. |
| Loans for start-up operating cost and working capital. |
| Technical assistance for proposed grantee projects. |
| Reasonable fees and charges for professional services necessary for the
planning and development of the project including packaging. |
| Refinancing of debts exclusive of interest incurred by or on behalf of an
association before an application for a grant when all of the following exist:
A. The debts were incurred for the facility or part thereof or service to be
installed or improved with the grant. B. Arrangements cannot be made with the
creditors to extend or modify the terms of the existing debt. |
| Providing financial assistance to third parties through a loan. |
| Training, when necessary, in connection with technical assistance.
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| Production of television programs to provide information on issues of
importance to farmers and rural residents. |
These grant funds cannot be used:
| To produce agriculture products through growing, cultivation, and
harvesting either directly or through horizontally integrated livestock
operations except for commercial nurseries, timber operations, or limited
agricultural production related to technical assistance projects. |
| To finance comprehensive type planning. This does not pre- clude the use
of grant funds for planning a given project. |
| For loans by grantees when the rates, terms and charges for these loans
are not reasonable or would be for purposes not eligible as describes above.
|
| For programs operated by cable television systems. |
| To fund a part of a project which is dependent on other funding unless
there is a firm commitment of the other funding to ensure completion of the
project. |
| If the grant funds are to be used to provide financial assistance to third
parties either through revolving loans or lease of facilities by grantee, at
least 51 percent of the outstanding interest in the project must have
membership or be owned by those who are either citizens of the United States
or reside in the United States after having been legally admitted for
permanent residence. |
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