Rural Business Enterprise Grants
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 04/02/2020 (Archived.)
Agency: Department of Agriculture
Office: Rural Business-Cooperative Service
Type(s) of Assistance Offered
Consolidated Farm and Rural Development Act, Section 310B, 7 U.S.C 1989.
Who is eligible to apply/benefit from this assistance?
Applicants eligible for RBE grants 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 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.
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 non- profit 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. 2 CFR 200, Subpart E - Cost Principles 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 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.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Preapplication Form SF-424 is filed at the Rural Development local office. The standard application forms as furnished by the Federal agency and required by OMB Circular Nos. A-110 and A-102 must be used for this program.
After the preapplication 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 office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
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 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 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 and other issues of importance to farmers and other rural residents. All uses must assist a small and emerging private business enterprise except for the TDG Program. 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?
Periodic reports are made to RD. Cash reports are not applicable. 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. Intermediaries must submit quarterly reports on lending activity, income and expenses, financial condition and progress, and an annual budget.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503.
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 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 program.
Length and Time Phasing of Assistance
Generally, 90 – 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. 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.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Contact your Rural Development State Office http://www.rd.usda.gov/contact-us/state-offices.
Director, Specialty Programs Division, 1400 Independence Ave SW, Room 4204 mail stop 3226, Washington, District of Columbia 20250-3222 Phone: (202) 720-1400.
(Project Grants) FY 14 $23,947,819; FY 15 est $0; and FY 16 est $0
Range and Average of Financial Assistance
$25,000 to $500,000. Average is less than $100,000.
Regulations, Guidelines and Literature
7 CFR 1942, Subpart G.
Examples of Funded Projects
Fiscal Year 2014: No Current Data Available Fiscal Year 2015: No Current Data Available Fiscal Year 2016: No Current Data Available