Rural Microentrepreneur Assistance Program in Michigan

PROGRAM STATUS:

Open

What does this program do?

It provides loans and grants to Microenterprise Development Organizations (MDOs) to:
  • To help microenterprises startup and growth through a Rural Microloan Revolving Fund.
  • Provide training and technical assistance to microloan borrowers and micro entrepreneurs.
 
Who may apply for this program?
The following are eligible to be a Microenterprise Development Organization:
  • Nonprofits.
  • Federally-recognized tribes.
  • Institutions of higher education.
The following are eligible to apply for a loan from the MDO as an ultimate recipient:
  • Businesses located in an eligible area with 10 or fewer full-time employees.
What is an eligible area?
  • 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.
 
Are there other requirements?
Microenterprise Development Organizations must demonstrate experience in managing a Revolving Loan Fund, or:
  • 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.
What kind of funding is available? 
  • 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.
What are the loan terms?
  • Maximum term is 20 years.
  • Two-year payment deferral.
  • Must establish a loan loss reserve fund.
What terms are required on loans to ultimate recipients?
  • Up to $50,000.
  • Fixed interest rate.
  • Limited to 75 percent of project cost.
How may the funds be used?
Microlenders may make microloans for qualified business activities and expenses including, but not limited to:
  • Working capital.
  • Debt refinancing.
  • Purchasing equipment and supplies.
  • Improving real estate.
How do we get started?
Applications are accepted on an ongoing basis. Please contact your local state office for additional information and to apply for the Rural Microentrepreneur Assistance Program.
 
Who can answer questions?
Contact your local office.
 
What law governs this program?
  • 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).
Why does USDA Rural Development do this?
Rural Development undertakes this program in order to support the development and ongoing success of rural microentrepreneurs and microenterprises.
 
NOTE: Because citations and other information may be subject to change, please always consult the program instructions listed in the section above titled “What law governs this program?” You may also contact your local office for assistance.

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.

There are currently no events scheduled.

USDA RD State Office
3001 Coolidge Rd.
Suite 200
East Lansing, MI 48823
517-324-5190 | Fax 855-813-7741

Jason Allen
State Director

Public Information Coordinator
Alec Lloyd
517-324-5204

Community Programs Staff
517-324-5156

Single Family Housing Staff
517-324-5210

Business Programs Staff
517-324-5157

Multi-Family Housing Staff
517-324-5142

Gladstone Area Office
2003 Minneapolis Ave.
Gladstone, MI 49783
906-428-1060 Ext. 4

Sault Ste. Marie Office
2847 Ashmun
Sault Ste. Marie, MI 49783
906-632-9611 Ext. 4

Traverse City Area Office
1501 Cass St., Suite A
Traverse City, MI 49684
231-941-0951 Ext. 4

West Branch Office
240 W. Wright St.
West Branch, MI 48661
989-345-5470 Ext. 4

Caro Area Office
1075 Cleaver Rd.
Caro, MI 48723
989-673-8173 Ext. 6

Grand Rapids Area Office
3260 Eagle Park Dr., Suite 107
Grand Rapids, MI 49525
616-942-4111 Ext. 6

Paw Paw Office
1035 East Michigan Ave., Suite A
Paw Paw, MI 49079
269-657-7055 Ext. 4

Mason Area Office
525 N. Okemos St., Suite B
Mason, MI 48854
517-676-4644Ext. 4

Flint Office
1525 North Elms Rd.
Flint, MI 48532
810-230-8766 Ext. 4