Rural Business Development Grant Program

Federal Agency: U.S. Department of Agriculture

Description: The Rural Business Development Grant Program is a competitive grant designed to support targeted technical assistance, training, and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1 million in gross revenues. Programmatic activities are separated into Enterprise or Opportunity type grant activities.

Eligible applicants:

  • Towns
  • Communities
  • State agencies
  • Authorities
  • Non-profit entities
  • Institutions of higher education
  • Federally-recognized tribes
  • Rural cooperatives (if organized as a private nonprofit corporation)

Eligible activities:

Enterprise grants must be used on projects that benefit small and emerging businesses in rural areas as specified in the grant application. Uses may include:

  • Training and technical assistance, such as project planning, business counseling and training, market research, feasibility studies, professional or/technical reports or producer service improvements
  • Acquisition or development of land, easements, or rights of way; construction, conversion, renovation of buildings; plants, machinery, equipment, access for streets and roads; parking areas and utilities
  • Pollution control and abatement
  • The capitalization of revolving loan funds, including funds that will make loans for start-ups and working capital
  • Distance adult learning for job training and advancement
  • Rural transportation improvement
  • Community economic development
  • Technology-based economic development
  • Feasibility studies and business plans
  • Leadership and entrepreneur training
  • Rural business incubators
  • Long-term business strategic planning

Opportunity grants can be used for:

  • Community economic development
  • Technology-based economic development
  • Feasibility studies and business plans
  • Leadership and entrepreneur training
  • Rural business incubators
  • Long-term business strategic planning

Award ceiling (MAX): N/A

Award floor (MIN): N/A

Funding Availability: $42 million

*The CARES Act includes an additional $20.5 million for this program. USDA will release new guidance for this funding at a later date.

Application cycle: Applications are typically accepted between January – March. This year, the deadline is April 15, 2020.

Special considerations:

  • Funds must be used for projects that benefit rural areas or towns outside the urbanized periphery of any city with a population of 50,000 or more.

Check out the eligibility area map!

More information: https://www.rd.usda.gov/programs-services/rural-business-development-grants

Who can tell me more?

Contact your USDA State or Area Office for guidance related to your specific community.

To apply: Contact your USDA State or Area Office to request an application package.