Rural Business Development Grant

To promote sustainable economic development and facilitate the development of small and emerging private business, industry, and related employment for improving the economy in rural communities.


Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - See Regional Agency Offices.

See Regional Agency Offices.

Consult your telephone directory for RD local office number.

If not listed, get in touch with appropriate Rural Development State Office listed in Appendix IV of the Catalog.


Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Rural business development grants (RBDG) can be divided into 3 types of grants: Business opportunity, Business enterprise and Television demonstration grants.

Funds may be used to assist in the economic development of rural areas by providing technical assistance, training, and planning for businesses.

Business enterprise type grants 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 for 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.

Rural business development grants (RBDG) can be divided into 3 types of grants: Business opportunity, Business enterprise and Television demonstration grants.

Funds may be used to assist in the economic development of rural areas by providing technical assistance, training, and planning for businesses.

Business enterprise type grants 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 for 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.



Eligibility Requirements

Applicant Eligibility

Applicants eligible for RBD grants are government entities, Indian tribes or 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.

Beneficiary Eligibility

Rural communities and small and emerging private business enterprises which will employ 50 or less new employees and have less than $1.0 million in projected gross revenue. Government entities, private nonprofit corporations, and Federally recognized Indian tribes that receive the grant to assist a business type operation. Grants are not made directly to a business.

Credentials/Documentation

Evidence of legal capacity, economic feasibility, and financial responsibility relative to the activity for which assistance is requested. 2 CFR 200 applies to this program. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

Application 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.

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.

Application Procedures

OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. 2 CFR and 2 CFR 400-418 applies to this program. Application Form SF-424 is filed at the Rural Development local office. The standard application forms as furnished by the Federal agency and required by 2 CFR and 2 CFR 400-418 must be used for this program.

Award Procedures

After the application 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.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Consolidated Farm and Rural Development Act, Section 310B, 7 U.S.C 1932.

Range of Approval/Disapproval Time

From 60 to 90 days. 30 to 90 days.

Appeals

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.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.
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. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements

Reports

Periodic reports are made to RD.

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.

Periodic reports are made to RD.

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.

Progress reports are not applicable.

Periodic reports are made to RD.

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.

Periodic reports are made to RD.

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.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. In accordance with the provisions of 2 CFR 200, "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal 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.

Records

The grantee shall maintain adequate records and accounts to assure that grant funds are used for authorized purposes.

Financial Information

Account Identification

12-0406-0-1-452.

Obigations

(Formula Grants) FY 13 $0; FY 14 Estimate Not Available; and FY 15 Estimate Not Available

Range and Average of Financial Assistance

$25,000 to $500,000. Average is less than $100,000.

Regulations, Guidelines, and Literature

7 CFR 4284, Subpart B.

Information Contacts

Regional or Local Office

See Regional Agency Offices. See Regional Agency Offices. Consult your telephone directory for RD local office number. If not listed, get in touch with appropriate Rural Development State Office listed in Appendix IV of the Catalog.

Headquarters Office

Rural Business-Cooperative Services, Specialty Programs Division, 1400 Independence Avenue, SW, Room 4204, Stop 3226, , Washington, District of Columbia 20250 Phone: 202-720-1400

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.



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