Rural Microentrepreneur Assistance Program in South Dakota

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.

Resources

Rural Business Newsletters

Spring 2019
Winter 2019
Fall 2018
Summer 2018
Spring 2018


 

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.

South Dakota Rural Business-Cooperative Programs Contact Map

RBS Map

Grant Konechne, Rural Business and Cooperative Programs Director
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD  57350
Phone: (605) 352-1108
Fax: (855) 262-1940

Clark Guthmiller, Specialist
1717 N. Lincoln Avenue, Suite 102
Pierre, SD  57501
Serves Campbell, Corson, Dewey,
Haakon, Hughes, Jones, Mellette, Potter,
Stanley, Sully, Todd, Walworth, and
Ziebach
Phone: (605) 301-3409
Fax: (855) 262-1942

Gary Wedel, Specialist
1820 North Kimball, Suite C
Mitchell, SD  57301
Serves Aurora, Brule, Buffalo, Charles
Mix, Davison, Douglas, Faulk, Gregory,
Hand, Hanson, Hyde, Jerauld, Lake,
Lyman, McCook, Miner, Sanborn, Spink,
and Tripp
Phone: (605) 299-3339
Fax: (855) 262-1941

Lance Lockwood (605) 858-6681, Specialist
414 East Stumer Road, Suite 200
Rapid City, SD  57701
Serves Bennett, Butte, Custer, Fall River,
Harding, Jackson, Lawrence, Meade,
Oglala Lakota, Perkins, and Pennington
Phone: (605) 858-6683
Fax: (855) 262-1943

Cayla Holleman, Specialist
1820 North Kimball, Suite C
Mitchell, SD  57301
Serves Bon Homme, Clay, Hutchinson,
Lincoln, Minnehaha, Moody, Turner, Union,
and Yankton
Phone: (605) 299-3357
Fax: (855) 262-1938

Cayla Holleman, Specialist
1820 North Kimball, Suite C
Mitchell, SD  57301
Serves Beadle, Brookings, Clark, Deuel, and Kingsbury
Phone: (605) 299-3357
Fax: (855) 262-1941

Clark Guthmiller (605) 301-3409 or Roxanne Woodring (605) 824-3623, Specialist
524 Enterprise Street South, Suite 100
Aberdeen, SD  57401
Serves Brown, Codington, Day, Edmunds,
Grant, Hamlin, Marshall, McPherson, and
Roberts
Phone: (605) 824-3627
Fax: (855) 262-1939

Carolyn Bloodgood, Technician
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD  57350
Phone: (605) 352-1144
Fax: (855) 262-1940

Teresa Urban, Loan Technician
200 4th Street SW, Federal Bldg. Rm. 210
Huron, SD  57350
Phone: (605) 352-1141
Fax: (855) 262-1940