Together, America Prospers

Rural Business Development Grants (RBDG)

Immediate Measures 

to Support Rural 

Communities Affected 

by COVID-19

Did you know eligible applicants 

can use RBDG funding to help 

those affected by COVID-19? 

Learn how a Kentucky community 

college purchased a 3D printer to 

use for some of its manufacturing 

courses and has now made more 

than 500 face masks for medical 

professionals. Learn more. 

What does this 

program do?

RBDG is a competitive grant 

designed to support the 

development or expansion of 

small and emerging businesses 

in rural areas through targeted 

technical assistance, capitalization 

of a revolving loan fund, certain 

site or facility development; or 

business opportunity projects. 

Small and emerging businesses are 

defined as those that have fewer 

than 50 employees and less than 

$1 million in gross revenues.

Who may apply for this program? 

Rural public entities including, but not 

limited to: 

• Towns 

• Communities 

• State agencies 

• Authorities 

• Nonprofit Corporations 

• Institutions of Higher Education 

• Federally recognized Tribes

NOTE: The application deadline for 

FY 2021 is March 31, 2021.

What is an eligible area? 

RBDG funds must be directed for 

projects benefitting rural areas or 

towns outside the urbanized periphery 

of any city with a population of 50,000 

or more. Check eligible areas. 

How much funding is available? 

There is no maximum grant amount 

for enterprise or opportunity type 

grants; however, smaller requests are 

given higher priority. Generally, grants 

range from $10,000 up to $500,000. 

There is no cost sharing requirement, 

but a match will improve application 

competitiveness. Total opportunity 

type grant funding is limited statutorily 

to an amount no greater than 10% of 

the total RBDG annual funding.

How may funds be used? 

Enterprise type grant funds can be 

used for a wide variety of activities 

that support or develop small and 

emerging businesses through 

assistance with problem solving, 

supportive infrastructure, or loan 

capital. (4280.417(a)(2)). 

Opportunity type grant funding 

may be used to establish business 

support centers, provide for a variety 

of training opportunities, or identify 

and analyze business opportunities. 

(4280.417(a)(1)).

How are applications evaluated for 

competitive funding? 

RBDG applications compete at the 

state office level, which are dependent 

on appropriations. Subject to budget 

appropriations, funds may be reserved 

for projects located in persistent poverty 

or Tribal areas.

All applications are evaluated 

based on: 

• Evidence showing job creation to 

occur with local businesses;

• Percent of nonfederal funding 

committed to the project;

• Economic need in the area to 

be served;

• Consistency with local economic 

development priorities;

• Experience of the grantee with 

similar efforts; and

• Other factors described in the 

current Notice of Solicitation 

of Applications (NOSA), published 

on February 4, 2021.
Rural Business Development 

Grants (RBDG)

How do we get started? 

Applications are accepted through 

USDA Rural Development’s local or

State offices once per year. Applicants 

are advised to view program information 

specific to your local or State office to 

learn about local application timelines, 

concept paper requirements, etc. 

Grant awardees will need to complete 

required paperwork and comply 

with the terms and conditions of the 

award. Contact your local or State 

office for details.

Who can answer questions? 

Contact your local or State offices. 

Why does USDA Rural Development 

do this? 

This program provides grants for rural 

projects that finance and facilitate 

development of small and emerging 

rural businesses, help fund distance 

learning networks, and help fund 

employment related adult education 

programs. To assist with business 

development, RBDGs may fund a 

broad array of activities.

NOTE: Because citations and other information may be subject to change, 

please contact your local office for assistance. You will find additional forms, 

resources, and program information at rd.usda.gov. USDA is an equal opportunity 

provider, employer, and lender.

Last Updated February 2021