Rural Business Enterprise Grant Program (RBEG)

The Rural Business Enterprise Grant Program supports the development of small and emerging private business enterprises in rural areas.  Recipients of grants are public bodies and private nonprofit corporations in a rural area with a population under 50,000.

Funds MAY BE USED to finance and develop small and emerging private business enterprises in rural areas including, but not limited to, the following:

• Acquisition and development of land, easements, and right-of-way.
• Construction, conversion, enlargement, repairs, or modernization of building, plants, machinery, equipment, access streets, and abatement facilities.
• Loan for start-up operating costs and working capital.
• Technical assistance for private business enterprises.
• Reasonable fees and charges for professional services.
• Refinancing of debts, excluding interest for an association under certain conditions.
• Providing financial assistance to third parties through a loan.
• Training, when necessary, private business enterprises in connection with technical assistance.

Funds MAY NOT be used:

• To produce agriculture products.
• To finance comprehensive area wide type of planning.
• For loans by grantees when the rates, terms, and charges are not reasonable or for ineligible purposes.
• For programs operated by cable television systems.
• To fund a part of a project dependent on other funding, unless there is a firm commitment for other funding that will ensure completion of the project.
• To provide a pass-through grant to a business.