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USDA Seeks Applications for Rural Businesses Development Grant Program to Create Jobs and Increase Economic Opportunities

Name
Nikki Gillespie
City
ST. PAUL
Release Date

USDA is seeking applications for the Rural Business Development Grant (RBDG) Program, previously known as Rural Business Enterprise Grant (RBEG) and Rural Business Opportunity Grant (RBOG) programs. Applications for Minnesota projects are due by close of business on April 14, 2017.

   RBDG is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1 million in gross revenues. Programmatic activities are separated into enterprise or opportunity type grant activities.

   Funding is available to public bodies, non-profit organizations, and federally recognized Tribes to finance and facilitate business opportunity or business enterprise projects that serve rural areas. Examples of business opportunity projects include, but are not limited to: community or technology-based economic development, feasibility studies and business plans, and leadership and entrepreneur training. Examples of business enterprise projects include, but are not limited to: acquisition or development of land, project planning, technical assistance, pollution control and abatement, feasibility studies and business plans, capitalization of revolving loan funds, and distance adult learning for job training and advancement.

   In fiscal year 2016, USDA awarded nearly $400,000 for six grants to help support the start-up or expansion of rural Minnesota small businesses through the RBDG program. For example, the City of Madelia was awarded a $99,000 grant to establish a revolving loan fund that they leveraged with donations and funding from local financial institutions, private contributors and other regional, state and federal programs. Funding was used to provide financial assistance to help Main Street businesses rebuild and repair after a fire destroyed nearly half of its buildings. This grant was provided through Section 6025 set-aside funds.

   The 2014 Farm Bill provides up to 10 percent set-aside funds for RBDG projects that support strategic economic development or community development plans through Section 6025 and requires a separate application.

   For more information on the RBDG program or help with an application, please visit www.rd.usda.gov/mn and contact your local area office.