Content provided by the Catalog of Federal Domestic Assistance
10.769 Rural Business Enterprise Grants
RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE
Consolidated Farm and Rural Development Act, as amended, Section 310B, Public Law 92-419, 7 U.S.C. 1932.
To facilitate the development of small and emerging private business, industry, and related employment for improving the economy in rural communities.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
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.
Applicant Eligibility: 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.
Pre-application Coordination: 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. An environmental 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.
Formula and Matching Requirements: Funds are allocated to States based 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.
POST ASSISTANCE REQUIREMENTS:
Reports: Periodic reports are made to RD.
Account Identification: 12-0400-0-1-452.
In fiscal year 2001, 414 grants were made. It is estimated that 487 grants will be made in fiscal year 2002.
REGULATIONS, GUIDELINES, AND LITERATURE:
7 CFR 1942, Subpart G.
Regional or Local Office: Consult your telephone directory for RD local office number. If no listing, get in touch with appropriate Rural Development State Office listed in Appendix IV of the Catalog.
EXAMPLES OF FUNDED PROJECTS:
Grant funds were used to assist rural communities in developing small industrial parks or sites by acquiring land, the purchase of necessary equipment, construction of buildings, to provide water and waste disposal facilities, and to pay for costs of streets, parking areas and access roads. Also, grant funds were utilized to establish/capitalize revolving loan funds to assist in the development of small and emerging private business enterprises in rural areas, and provided technical assistance (i.e., a problem solving function) to qualifying small businesses in rural areas.
CRITERIA FOR SELECTING PROPOSALS:
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.