Rural Microentrepreneur Assistance Program in Michigan

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.

• Nonprofits.
• 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).