Rural Business Enterprise Grant Eligibility
In 2010, the U.S. Department of Agriculture distributed about $20 million in Rural Business Enterprise Grants to 200 enterprises in smaller communities. The aim of the program is to give rural areas a competitive advantage with urban areas in terms of economic development. Small businesses cannot directly apply for these loans; instead, local government bodies, nonprofits or Indian tribes can apply on their behalf.
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Applicant Eligibility
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The USDA defines "small businesses" as those with 50 employees or fewer that have a projected annual gross revenue of less than $1 million. Businesses cannot apply directly for Rural Business Enterprise Grants; instead, other groups can apply on their behalf, such as local and state government bodies, Native American tribes and private nonprofits in rural areas. Communities with 50,000 residents or more and their adjacent towns are not eligible for the program.
Projects
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Rural Business Enterprise Grants can be used for a variety of projects benefiting businesses in rural areas. The grants can fund real estate-related projects, such as buying land or easements and construction. Projects can be for improving infrastructure, installing utility services or constructing parking lots. Communities can spend money on pollution control or tax abatements. They can also create their own programs, such as revolving loans for small-business development.
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Funding
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The USDA awards Rural Business Enterprise Grants at its own discretion and does not set maximum awards that communities can apply for. It does, however, give preference to smaller projects. Most grants are between $10,000 and $500,000. Applicants are not required to match the grants, but the USDA gives preference to those with additional contributions. The Rural Assistance Center estimates average individual grants were about $99,000 in 2010. Congress determines the overall budget through its annual budget appropriations. In 2010, the program distributed about $20 million to approximately 200 recipients.
Priorities
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The USDA seeks to give awards to applicants in communities where the unemployment is higher than that of their states' averages or where their median household income levels are lower than their states' medians, as determined by the 2010 U.S. census.
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References
Resources
- Photo Credit rural ramble image by hazel proudlove from Fotolia.com
