The program can provide development credit in towns of 50,000 or less. Jobs produced in that manner will help people stay in their own communities and raise their standard of living in the rural environment. The program provides guarantees to commercial lenders who make credit available to establish or maintain businesses in rural areas. Priorities place special emphasis on saving existing jobs as well as creating employment opportunities. Rural Business Enterprise Grants include grants made to third party lenders to establish revolving loan programs.
Eligibility is limited to public bodies and private nonprofit corporations.
Public bodies include incorporated towns and villages, boroughs, townships, counties, states, authorities, districts, and Indian tribes on Federal and State reservations and other federally recognized Indian tribal groups in rural areas. The Rural Economic Development Loan and Grant Program finances rural economic development and rural job creation projects that are based on sound economic and financial analyses. Loans are provided to finance a broad array of projects, including for-profit businesses. Grants are targeted to certain purposes such as community development assistance, education and training for economic development, medical care, telecommunications for education, job training or medical services, business incubators, and technical assistance. RUS borrowers may receive financing for grant purposes through either a loan or grant, or a combination loan and grant to establish a revolving loan fund.