Rural Business Enterprise Grants - Arra


To 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
Deleted 01/15/2013 (Archived.)
Program Number
Federal Agency/Office
Agency: Department of Agriculture
Office: Rural Development
Type(s) of Assistance Offered
Project Grants
Program Accomplishments
Not Applicable.
American Recovery and Reinvestment Act of 2009, Public Law 111-5; Consolidated Farm and Rural Development Act, as amended, Section 310B, Public Law 92-419, 7 U.S.C. 1989, Public Law 101-624, Public Law 102-142, 7 U.S.C. 1932.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Applicants eligible for RBEG funds are public bodies and 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 TDG funds 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.
Beneficiary Eligibility
A small and emerging private business enterprise which will employ 50 or less new employees and has less than $1.0 million in projected gross revenue. Public bodies, private nonprofit corporations, and Federally recognized Indian tribes receive the grant to assist a business. Grants are not made directly to the business.
Evidence of legal capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested. OMB Circular No. A-87 applies to this program.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. An environmental impact assessment 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, if the State has selected the program for review.
Application Procedure
OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. SF-424 is filed at the Rural Development local office.
Award Procedure
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.
Not Applicable.
Approval/Disapproval Decision Time
Other - Not Specified.
If an application is rejected, the reasons for rejection are fully stated. Applicant may request a review of this decision from the next higher management level of Rural Business-Cooperative Service.
Not Applicable.
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. In addition to meeting the requirements of the RBEG Program, applicants must also comply with applicable provisions of the ARRA and any related regulations and guidance.
How may assistance be used?
Rural business enterprise grant (RBEG) funds 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 to adult students; develop, construct or acquire 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. All uses must assist a small and emerging private business enterprise except for the TDG program.
What are the requirements after being awarded this opportunity?
Forms SF-269, "Financial Status Report," and a Project Performance Activity Report are required of all grantees on a quarterly basis (due 15 working days after end of quarter). A final Project Performance Report is required with the last SF-269. The final report may serve as the last quarterly report. Grantees shall constantly monitor performance to ensure that time schedules are being met, projected work by time periods is being accomplished, and other performance objectives are being achieved. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. Performance monitoring is not applicable.
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Periodic audits should be made as part of the recipient’s systems of financial management and internal control to meet terms and conditions of grants and other agreements.
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
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
Funds to be available through September 30, 2010. Method of awarding/releasing assistance: quarterly.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. A listing of RD State Offices can be found at
Headquarters Office
Director, Specialty Programs Division Rural Business-Cooperative Service, Department of Agriculture
1400 Independence Ave., SW , Washington, District of Columbia 20250 Phone: 2027201400
Website Address
Financial Information
Account Identification
(Project Grants) FY 08 $54,612,299; FY 09 $38,227,000; FY 10 $38,227,000
Range and Average of Financial Assistance
Average: $100,000.
Regulations, Guidelines and Literature
7 CFR 1942, Subpart G
Examples of Funded Projects
Fiscal Year 2010: No Current Data Available Fiscal Year 2011: No Current Data Available Fiscal Year 2012: No Current Data Available


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