What does this program do?
- To help microenterprises startup and growth through a Rural Microloan Revolving Fund.
- Provide training and technical assistance to microloan borrowers and micro entrepreneurs.
- Federally-recognized tribes.
- Institutions of higher education.
- Businesses located in an eligible area with 10 or fewer full-time employees.
- Rural areas outside a city or town with a population of fewer than 50,000 residents. Urbanized areas near a city of 50,000 or more may not be eligible.
- The borrower’s headquarters may be based within a larger city so long as the project service area is located in an eligible rural area.
- The lender may be located anywhere.
- Certify that it or its employees have received education and training from a qualified microenterprise development training entity so that the applicant has the capacity to manage such a revolving loan fund.
- Demonstrate that it is actively and successfully participating as an intermediary lender in good standing under the U.S. Small Business Administration (SBA) Microloan Program or other similar loan programs as determined by the Administrator.
- Grants are available to provide technical assistance to rural micro-entrepreneurs or microenterprises, up to $205,000 annually. Funding at the requested level is not guaranteed, and at least 15 percent matching funds are required.
- Loans of $50,000 to $500,000 may be used for establishing a Rural Microloan Revolving Fund managed by the Microenterprise Development Organization. Total aggregate debt is capped at $2.5 million.
- Maximum term is 20 years.
- Two-year payment deferral.
- Must establish a loan loss reserve fund.
- Up to $50,000.
- Fixed interest rate.
- Limited to 75 percent of project cost.
- Working capital.
- Debt refinancing.
- Purchasing equipment and supplies.
- Improving real estate.
- Code of Federal Regulations, 7 CFR 4280, subpart D.
- This program is authorized by Section 379E of the Consolidated Farm and Rural Development Act (7 USC 2008s).
NOTE: If state-specific forms are not shown above, please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a Business Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in your application.
You may also access the Code of Federal Regulations, 7 CFR 4280, subpart D.
There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.
For information or to file an application, contact the Rural Development (RD) office serving your county:
Anniston: (256) 835-7821, ext. 4
Counties served: Calhoun, Cherokee, Clay, Cleburne, DeKalb, Etowah, Randolph, Talladega
Bay Minette: (251) 937-3297, ext. 5
Counties served: Baldwin, Clarke, Conecuh, Escambia, Mobile, Monroe, Washington
Camden: (334) 682-4116, ext. 4
Counties served: Autauga, Butler, Chilton, Choctaw, Dallas, Lowndes, Marengo, Perry, Wilcox
Cullman: (256) 734-6471 ext. 5
Counties served: Blount, Cullman, Franklin, Jefferson, Marion, St. Clair, Walker, Winston
Huntsville: (256) 532-1677 ext. 5
Counties served: Colbert, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marshall, Morgan
Ozark: (334) 774-4926 ext. 4
Counties served: Barbour, Coffee, Covington, Crenshaw, Dale, Geneva, Henry, Houston, Pike
Tuscaloosa: (205) 553-1733 ext. 5
Counties served: Bibb, Fayette, Greene, Hale, Lamar, Pickens, Shelby, Sumter, Tuscaloosa
Tuskegee: (334) 725-3321 ext. 4
Counties served: Bullock, Chambers, Coosa, Elmore, Lee, Macon, Montgomery, Tallapoosa, Russell
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