Together, America Prospers

Rural Microentrepreneur Assistance

What does this 

program do? 

Provides loans and grants to 

Microenterprise Development 

Organizations (MDOs) to: 

• Provide microloans for

microenterprise startups

and growth through a Rural

Microloan Revolving Fund

• Provide training and

technical assistance to

microloan borrowers and

micro entrepreneurs

Who can apply 

for this program? 

The following are eligible to be 

an MDO:

• Nonprofits

• Federally recognized Tribes

(A list of federally recognized

Tribes can be found here:

www.bia.gov/bia/ois/tgs)

• Institutions of higher education

The following are eligible to apply 

for a loan from the MDO as an 

ultimate recipient:

• Businesses located in an

eligible area with 10 or fewer

full-time employees

What is an eligible area?

• Rural areas outside cities or towns

with populations fewer than 50,000

are eligible to apply. Urbanized areas

near cities of 50,000 or more may not

be eligible. Check with your local RD

office to confirm.

• The borrower’s headquarters can be

based in a larger city as long as the

project service area itself is in an

eligible rural area.

• The lender can be located anywhere.

You can check for eligible addresses for 

Business Programs here: 

tinyurl.com/3mr6hxpu

Are there other requirements?

MDOs must demonstrate experience 

in managing a Revolving Loan Fund, or:

• Certify that they or their employees

have received education and training

from a qualified microenterprise

development training entity so that the

applicant has the capacity to manage

such a revolving loan fund; or

• Demonstrate that they are actively

and successfully participating as

an intermediary lender in good

standing under the U.S. Small

Business Administration (SBA)

Microloan Program or other similar

loan programs as determined by

the Administrator

How much funding is available 

to MDOs?

• Annual grants of up to 

$100,000 are available to 

provide technical assistance

to rural microentrepreneurs or 

microenterprises. Funding at the 

requested level is not guaranteed, 

and at least 15 percent in matching 

funds is required. 

• Loans of $50,000 - $500,000 can be

used to establish a Rural Microloan

Revolving Fund managed by the

MDO. Total aggregate debt is

capped at $2.5 million.

What are the loan terms for 

the MDOs?

• Maximum term is 20 years

• 2-year payment deferral

• Must establish a loan loss reserve fund

What terms are required on loans to 

ultimate recipients?

• Up to $50,000

• Fixed interest rate

• Limited to 75 percent of project cost

How can funds be used? 

Microlenders may make microloans 

for qualified business activities and 

expenses including, but not limited to:

• Working capital

• Debt refinancing

• Purchasing equipment and supplies

• Improving real estate

How do we get started? 

Applications are accepted on an 

ongoing basis. Please contact 

your local state office or additional 

information and to apply. 
Rural Microentrepreneur Assistance

Who can answer questions? 

Contact your local RD office. 

A list is available at this link: 

www.rd.usda.gov/about-rd/state-offices

What governs this program? 

• Code of Federal Regulations, 

7 CFR 4280, subpart D 

(available at this link: 

tinyurl.com/5b7ymper)

• This program is authorized by 

Section 379E of the Consolidated 

Farm and Rural Development Act 

(7 USC 2008s)

Website for the 

Rural Microentrepreneur 

Assistance Program

NOTE: Because information changes, always consult official program instructions 

or contact your local Rural Development office for help. A list is available at this 

link: go.usa.gov/xJHPE. You will find additional resources, forms, and program 

information at rd.usda.gov. USDA is an equal opportunity provider, employer, and 

lender.

Last Updated October 2023