More Support for 

Rural Businesses

In some areas, USDA Rural Development 

provides funds to local organizations, called 

“intermediaries,” who use funds to offer loans and 

grants for business startup or expansion. These 

re-lending options include:

• Intermediary Relending Program - 

offers low-interest loans for business and 

community development;

• Rural Economic Development Loan and 

Grant Program - offers affordable loans through 

local utilities for business development that help 

to create or save rural jobs; and 

• Rural Microentrepreneur Assistance Program - 

offers microloans to businesses with 10 or fewer 

employees through intermediaries.

How To Get Started

• Contact your local USDA Rural Development 

office for application information. 

• Funding cycles depend on the program you 

are interested in; they can be annual, quarterly, 

or continuous. 

• Program resources like forms, guidance, 

certifications, checklists, and more are 

available online.

For More Information

Information on all USDA Rural Development 

programs is available online or from the office 

serving your area.

www.rd.usda.gov

1 (800) 670-6553 (toll free)

USDA is an equal opportunity 

provider, employer, and lender.

PA-2178

January 2016

Help for Rural 

Businesses

From USDA Rural Development
Are you looking to start or expand a business 

in a rural area? USDA Rural Development 

may be able to help. We offer:

• Financing to start or expand businesses;

• Loans and grants to save and create jobs 

for rural residents;

• Financing for renewable energy systems 

and energy efficiency improvements; and

• Financing in partnership with community 

organizations to encourage new small 

business startups and capital investments.

Assistance under these programs is 

available to applicants in areas designated 

as “rural.” Under law, the definition of “rural 

area” is different for each program.

Business and Industry (B&I) 

Loan Guarantees

This program provides financial backing for rural 

businesses. Commercial loan guarantees are available 

for up to 80 percent of the loan amount. Applicants 

work with private-sector lenders. USDA Rural 

Development provides a guarantee for the loan. 

Who may apply?

• For-profit 

businesses;

• Nonprofits and 

cooperatives;

• Federally Recognized 

Tribes;

• Public bodies; 

• Individuals.

How can we use the funds?

• Convert, enlarge, repair, modernize, 

or develop business;

• Purchase and develop land, easements, 

rights-of-way, buildings, or facilities;

• Purchase equipment, machinery, supplies, 

or inventory;

• Refinance when new jobs will be created 

and other conditions are met;

• Acquire businesses and industries when the

loan will keep the business from closing and/or 

save or create jobs.

The borrower’s headquarters may be based within 

a larger city as long as the project is located in an 

eligible rural area.

Rural Energy for America 

Program (REAP) 

REAP provides assistance to agricultural producers 

and rural small businesses for renewable energy 

systems and energy efficiency improvements 

through Federal loan guarantees and grants. Funds 

may be used to purchase, install and construct:

Renewable energy systems, including:

• Wind;

• Solar;

• Biomass, including 

anaerobic digesters;

• Geothermal; and more.

Energy efficiency projects, including:

• Heating, ventilation, 

and air conditioning 

systems;

• Insulation;

• Lighting;

• Cooling or 

refrigeration units;

• Controls and 

equipment;

• Doors, windows, 

and other building 

improvements; 

and more. 

Grants can finance up to 25 percent of the project 

cost, and loans or loan and grant combinations can 

finance up to 75 percent of the project cost.

Rural Business 

Development Grants

These are competitive grants to encourage 

development or expansion of rural businesses. 

The grants may be used for targeted technical 

assistance, training, and other activities.