Rural Business Investment Program
Link
https://www.rd.usda.gov/programs-services/business-programs/rural-business-investment-program
Additional Links
Deadline
Applications accepted on an ongoing basis
Sponsor
USDA Rural Development (USDA RD)
Purpose
Awards licenses granting newly formed, for-profit entities the right to operate as a Rural Business Investment Company (RBIC) in order to promote rural economic development, spur wealth creation, and increase job opportunities. RBICs are designed to help meet the investment needs in rural areas by making equity capital investments in smaller enterprises that are unable to access capital from other sources. Licenses allow an RBIC to access the Farm Credit System and other banks to capitalize their investment fund, and eligible entities may apply to operate as a leveraged or non-leveraged RBIC. Financial assistance is available to help leverage the fund.
RBIC funds must meet the following investment requirements:
- At least 75% of investments must be made in rural areas with a population of 50,000 or less
- Up to 10% of investments can be made in urban areas
- At least 50% of investments must be in smaller enterprises, defined as having a net worth of $6,000,000 and net income of $2,000,000 in the prior 2 years
Amount of Funding
The program provides eligible applicants with a Rural Business Investment Company (RBIC) license.
Who Can Apply
Eligible applicants include newly formed, for-profit entities or a newly formed subsidiary of a for-profit entity. Organizations may be structured as limited partnerships, limited liability companies, or corporations.
Applicants must meet the following requirements:
- Must raise a minimum of $10,000,000 in private equity capital
- Must have a qualified management team with relevant experience in community development and venture capital financing
- Must agree to invest in rural areas and identify the specific rural areas in which it plans to invest
Geographic Coverage
Nationwide
What This Program Funds
Starting a Business
Application Process
Application instructions, requirements, and other information can be found on the program website.
Applicants are encouraged to contact the Rural Business Investment Program at RBIP@usda.gov before beginning an application in order to discuss the program and the application process in further detail.
Contact
For program questions:
RBIP@usda.gov
Topics This Program Addresses
Economic Development • Employment