RD Rural Business Enterprise Grants Program (RBEG) « Back to Search Results
RD Rural Business Enterprise Grants Program (RBEG)

Category: Federal Incentives, Grants & Loans

AGENCY: U.S. Department of Agriculture Rural Development (RD), Rural Business-Cooperative Service (RBS)
DESCRIPTION: The Rural Business Enterprise Grants Program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses, help fund distance learning networks and employment related adult education programs.
• Eligibility is limited to communities, towns, state agencies, private non-profit corporations, and federally-recognized Indian Tribal groups.
• Technical assistance (market studies, business plans, training, etc.); purchase machinery and equipment to lease to a small and emerging business; create a revolving loan fund (provide partial funding as a loan to a small and emerging business for the purchase of equipment, working capital or real estate); or construct a building for a business incubator for small and emerging businesses.
• Rural is defined as under 50,000 in population. Priority is given to applications for projects in rural communities of 25,000 in population and under.

• Maximum Program Benefits: Grant.
 • Grants range from $10,000 to $50,000.
• Smaller projects are given higher priority.
• Businesses must have fewer than 50 employees and less than $1 million in gross revenues.
• Grant funds do not go directly to the business. 
• Grants cannot be used for agricultural production, comprehensive area wide planning, loans by grantees when the rates, terms, and charges for those loans are not reasonable or would be for purposes not eligible under RBEG regulations, development of a proposal that may result in the transfer of jobs or business activity from one area to another. This provision does not prohibit establishment of a new branch or subsidiary, development of a proposal which may result in an increase of goods, materials, commodities, services, or facilities in an area when there is not sufficient demand, programs operated by cable television systems, or to fund part of a project which is dependent on other funding, unless there is a firm commitment of the other funding to ensure completion of the project.
• For details, visit http://www.rurdev.usda.gov/rbs/busp/rbeg.html.
• Or the Rural Development Homepage at http://www.rurdev.usda.gov/rbs/index.html.

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