Rural Business Development Grant
To promote sustainable economic development and facilitate the development of small and emerging private business, industry, and related employment for improving the economy in rural communities.
General information about this opportunity
Last Known Status
Rural Business-Cooperative Service, Department of Agriculture
Type(s) of Assistance Offered
A - Formula Grants; B - Project Grants
Consolidated Farm and Rural Development Act, Section 310B, 7 U.S.C 1932.
Who is eligible to apply/benefit from this assistance?
Applicants eligible for RBDG grants are government entities, Indian tribes or nonprofit corporations serving rural areas such as States, counties, cities, townships, and incorporated towns and villages, boroughs, authorities, districts and Indian tribes on Federal and State reservations which will serve rural areas. Applicants eligible for TD grants are statewide, private, nonprofit, public television systems whose coverage is predominantly rural. Rural area for this program is defined as a city, town, or unincorporated area that has a population of 50,000 inhabitants or less, other than an urbanized area immediately adjacent to a city, town, or unincorporated area that has a population in excess of 50,000 inhabitants.
Rural communities and small and emerging private business enterprises which will employ 50 or less new employees and have less than $1.0 million in projected gross revenue. Government entities, private nonprofit corporations, and Federally recognized Indian tribes that receive the grant to assist a business type operation. Grants are not made directly to a business.
Evidence of legal capacity, economic feasibility, and financial responsibility relative to the activity for which assistance is requested. 2 CFR 200 applies to this program.
What is the process for applying and being award this assistance?
Preapplication coordination is required. An environmental impact statement is required for this listing. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Application coordination is required. An environmental impact statement is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 2 CFR and 2 CFR 400-418 applies to this program. Application Form SF-424 is filed at the Rural Development local office. The standard application forms as furnished by the Federal agency and required by 2 CFR and 2 CFR 400-418 must be used for this program.
After the application has been reviewed by the RD local office, it is forwarded to the RD State Office for review and processing instructions. Following approval by the State Office, funds are made available to the local office for final delivery. Notification of awards must be made to the designated State Central Information Reception Agency.
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 60 to 90 days. 30 to 90 days
Adverse actions by RBS in connection with this program may be appealed by contacting the Area Supervisor of the USDA National Appeals Division. Appeals will be handled in accordance with 7 CFR 1900-B and 7 CFR part 11
How are proposals selected?
Projects selected for funding should, as much as practical, adhere to the following priorities: (1) Projects which will be located in communities having a large portion of their population with low incomes; (2) projects which will save existing jobs; (3) projects which will create jobs; and (4) projects located in areas with high unemployment rate.
How may assistance be used?
Rural business development grants (RBDG) can be divided into 3 types of grants: Business opportunity, Business enterprise and Television demonstration grants. Funds may be used to assist in the economic development of rural areas by providing technical assistance, training, and planning for businesses. Business enterprise type grants may be used to create, expand, or operate rural distance learning networks or programs that provide educational or job training instruction related to potential employment or job advancement for adult students; develop, construct or acquisition land, buildings, plants, equipment, access streets and roads, parking areas, utility extensions, necessary water supply and waste disposal facilities; refinancing; services and fees; and to establish a revolving loan fund. Television demonstration grant (TDG) funds may be used for television programming to demonstrate the effectiveness of providing information on agriculture
What are the requirements after being awarded this opportunity?
Periodic reports are made to RD. Intermediaries must submit quarterly reports on lending activity, income and expenses, financial condition and progress, and an annual budget. Intermediaries must submit quarterly reports on lending activity, income and expenses, financial condition and progress, and an annual budget.
The grantee shall maintain adequate records and accounts to assure that grant funds are used for authorized purposes.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching is voluntary. This program has no statutory formula or specific matching requirements. Funds are allocated to States on rural population and percent of nonmetropolitan per capita income. On occasion, the allocation to States may not be practical due to funding or administrative constraints. In these cases, funds will be controlled by the National Office.
MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Generally, 90 to 120 days, subject to the availability of funding. See the following for information on how assistance is awarded/released: Grant funds are disbursed in multiple draws, generally on a reimbursement basis upon the written request of the grantee. Method of awarding/releasing assistance: Lump.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Consult your telephone directory for RD local office number. If not listed, get in touch with appropriate Rural Development State Office listed in Appendix IV of the Catalog. Click here for a listing of local offices https://www.rd.usda.gov/contact-us/state-offices
Rural Business-Cooperative Services
Specialty Programs Division, 1400 Independence Avenue, SW, Room 4204, Stop 3226,
Washington, DC 20250 US
(Formula Grants) FY 18$34,000,000.00; FY 19 est $43,000,000.00; FY 20 FY 17$33,000,000.00; FY 16 est $28,000,000.00; -
Range and Average of Financial Assistance
$25,000 to $500,000. Average is less than $100,000.
Regulations, Guidelines and Literature
7 CFR 4284, Subpart B.
Examples of Funded Projects