USDA Rural Development: Businesses
u s d a Rural Development is the leading advocate for rural America. The mission area supports rural communities and enhances quality of life for rural residents by improving economic opportunities, community infrastructure, environmental health, and the sustainability of agricultural production. To support rural regional economic prosperity, u s d a Rural Development provides job training and business development opportunities for rural residents, including cooperative business development, community economic development and strategic community planning and faith-based and self-help initiatives. Funding for most of these efforts is administered by u s d a Rural Business Programs. You can find out more by clicking here.
Note: Click on the loan/grant name to learn more about each.
Loans for Businesses
Development Business Programs (b p) works in partnership with the private sector and the community-based organizations to provide financial assistance and business planning. It helps fund projects that create or preserve quality jobs and/or promote a clean rural environment. The financial resources of b p are often combined with those of other public and private credit source lenders to meet business and credit needs in under-served areas. Recipients of these programs may include individuals, corporations, partnerships, cooperatives, public bodies, nonprofit corporations, Indian tribes, and private companies.
Business and Industry Guaranteed Loans
The purpose of the B & I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This is achieved by strengthening the existing private credit structure through the guarantee of quality loans, which will provide lasting community benefits. The guarantee authority is not intended for marginal or substandard loans or for relief of lenders having such loans.
Intermediary Relending Program
The purpose of the i r p program is to reduce poverty and increase economic activity and employment in rural communities. Under the IRP program, loans are provided to local organizations (intermediaries) for the establishment of revolving loan funds. The intermediaries then use the revolving loan funds to assist with financing business and economic development activity to create or retain jobs in disadvantaged and remote communities. Intermediaries are encouraged to work harmoniously with State and regional strategies and in partnership with other public and private organizations that can provide complimentary resources.
Biorefinery Assistance Program/ Biorefinery Assistance Loan Guarantees
The purpose the Biorefinery Assistance program (also known as Section 9003) is to assist in the development of new and emerging technologies for the development of advanced biofuels. Doing so will hopefully increase the energy independence of the United States; promote resource conservation, public health, and the environment; diversify markets for agricultural and forestry products and agriculture waste material; and create jobs and enhance the economic development of the rural economy.
Rural Energy for America Program Guaranteed Loan Program (REAP LOANS)
The r e a p Guaranteed Loan Program encourages the commercial financing of renewable energy (bioenergy, geothermal, hydrogen, solar, wind and hydro- power) and energy efficiency projects. Under the program, project developers will work with local lenders, who in turn can apply to u s d a Rural Development for a loan guarantee up to 85 percent of the loan amount.
Rural Economic Development Loan and Grant
The r e d Loand and Grant program provides funding to rural projects through local utility organizations. Under the r e d Loan program, u s d a provides zero interest loans to local utilities, which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The local businesses repay the lending utility directly. The utility is responsible for repayment to the Agency. Under the r e d Grant program, u s d a provides grant funds to local utility organizations, which use the funding to establish revolving loan funds. Loans are made from the revolving loan fund to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to the Agency.
Rural Microentrepreneur Assistance Program (RMAP)
The purpose of the r m a p program is to support the development and ongoing success of rural microentrepreneurs and microenterprises. Direct loans and grants are made to selected Microenterprise Development Organizations (m d o s).
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Grants for Businesses
Section 9004: Repowering Assistance Program
This Grant announces the intention of the u s d a to make payments to eligible biorefineries to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of these eligible biorefineries.
Section 9005: Bioenergy Program for Advanced Biofuels Payments
to Advanced Biofuel Producers
The purpose of this section is to support and ensure an expanding production of Advanced Biofuels by providing payments to Eligible Advanced Biofuel Producers in rural areas. Payments will be made to eligible Advanced Biofuel Producers for the production of fuel derived from renewable biomass other than corn kernel starch. Eligible alternatives are:
- Biofuel derived from cellulose, hemicellulose, or lignin
- Biofuel derived from sugar and starch (other than Ethanol derived from corn kernel starch)
- Biofuel derived from waste material, including crop residue, other vegetative waste material, animal waste, food waste and yard waste
- Diesel-equivalent fuel derived from Renewable Biomass, including vegetable oil and animal fat
- Biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from Renewable Biomass
- Butanol or other alcohols produced through the conversion of organic matter from Renewable Biomass
- Other fuel derived from cellulosic biomass
Rural Business Enterprise Grants (RBEG) Program
The r b e g program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses help fund distance learning networks, and help fund employment related adult education programs. To assist with business development, r b e g s may fund a broad array of activities.
The r e a p / e a / r e d a Grant Program will provide grants for energy audits and renewable energy development assistance. For all projects, the system must be located in a rural area, must be technically feasible, and must be owned by the applicant.
The r e a p / r e s / e e i Grants Program provides grants for energy audits and renewable energy development assistance. It also provides funds to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements.
SECTION 9007: Rural Energy For America Program Grants
(REAP Feasibility Study Grants)
The r e a p /Feasibility Grant Program provides grants for energy audits and renewable energy development assistance. It also provides funds to agricultural producers and rural small businesses to conduct feasibility study for a renewable energy system.
Rural Economic Development Loan and Grant
The r e d Loand and Grant program provides funding to rural projects through local utility organizations. Under the r e d Loan program, u s d a provides zero interest loans to local utilities, which they, in turn, pass through to local businesses (ultimate recipients) for projects that will create and retain employment in rural areas. The local businesses repay the lending utility directly. The utility is responsible for repayment to the Agency. Under the r e d Grant program, u s d a provides grant funds to local utility organizations, which use the funding to establish revolving loan funds. Loans are made from the revolving loan fund to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to the Agency.
Rural Business Opportunity Grants (RBOG)
The r b o g program promotes sustainable economic development in rural communities with exceptional needs through the provision of training and technical assistance for business development, entrepreneurs, and economic development officials and assistance with economic development planning.
Small Socially-Disadvantaged Producer Grant (SSDPG)
Formerly known as the Small, Minority Producer Grant Program, the primary objective of the s s d p g program is to provide technical assistance to small, socially-disadvantaged agricultural producers through eligible cooperatives and associations of cooperatives. Grants are awarded on a competitive basis. The maximum award amount per grant is $200,000.
Value-Added Producer Grants (VAPG)
Grants may be used for planning activities and for working capital for marketing value-added agricultural products and for farm-based renewable energy. Eligible applicants are independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures.
Rural Cooperative Development Grant Program (RCDG)
USDA Rural Development and the 1890 Land-Grant Universities are working together on a new approach to support the development of businesses that create quality jobs. This partnership helps the 1890 Institutions provide businesses with the assistance needed to organize and operate efficiently and profitably.
Research on the Economic Impact of Cooperatives (REIC)
The U.S. Department of Agriculture is encouraging research on the issue of determining the economic impact of cooperative organizations. Approximately $300,000 will be made available in competitive cooperative agreement funds for fiscal year (FY) 2009 to be expended over a two-year period to conduct research on the national economic impact of all types of cooperatives. Institutions of higher education interested in applying for a competitively awarded cooperative research agreement are encouraged to apply.
1890 Land Grant Colleges and Universities Initiative
u s d a Rural Development and the 1890 Land-Grant Universities are working together on a new approach to support the development of businesses that create quality jobs. This partnership helps the 1890 Institutions provide business. The program aims to develop income-producing projects for under-developed rural communities; Create self-sustaining, long-term economic development in targeted areas of high unemployment through partnerships with the Universities and community-based organizations; Assist and guide these communities in becoming self-sustainable.
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USDA Rural Development: Businesses
Loans for Businesses
Grants for Businesses
Louisiana Rural Development Office
(external link)
