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The US Department of Agriculture (USDA) Rural Business Cooperative Service (RBCS) has announced that it’s now accepting applications for the 2026 Fiscal Year Rural Business Development Grant (RBDG) program.

The RBDG program’s purpose is to promote economic development and job creation projects by awarding grant funding in two separate categories: Business Opportunity Grants and Business Enterprise Grants. USDA expects approximately $27.7 million available overall, with applications due June 30, 2026 (June 15, 2026 for Strategic Economic and Community Development (SECD) applications).

What does the RBDG program seek to fund?

Business Opportunity Grants may be used for business support centers, technology-based economic development, leadership and entrepreneur training, feasibility studies, business plans, long-term strategic planning, and other eligible activities.

Business Enterprise Grants may be used for training and technical assistance, project planning, business counseling, market research, feasibility studies, and product or service improvements, buying or developing land, easements, or rights of way, including access streets and parking areas, constructing or renovating buildings, and buying machinery and equipment, capitalizing revolving loan funds, and supporting rural business incubators and community economic development and other eligible activities.

What is the Strategic Economic and Community Development Application?

Strategic Economic and Community Development (SECD) was authorized by Section 6401 of the Agriculture Improvement Act of 2018 (2018 Farm Bill) for projects that support multi-jurisdictional and multi-sectoral strategic community investment plans. For the 2026 RBDG program, USDA anticipates reserving 5 percent of all funds for projects that promote and partially or completely implement strategic community investment plans. RBDG applications for consideration under the SECD priority are due June 15, 2026.

What are the key priorities for this solicitation?

USDA encourages applicants to consider projects that will advance the following RBCS Priorities:

1. Domestic Manufacturing and industrial capacity

2. Domestic Energy Production and energy security

3. New and expanded markets for American Farmers and rural producers

4. Program integrity, including the prevention and reduction of fraud, waste, and abuse

Who is eligible to apply?

The applicant must be one of the following: a public body/government entity; an Indian Tribe; or a nonprofit entity primarily serving rural areas. The applicant must have sufficient financial strength and expertise in activities proposed in the application to ensure accomplishment of the described activities and objectives.

What kind of funding is available?

There is no maximum grant amount; however, smaller requests are given higher priority. Over the past three years, individual grant awards have averaged approximately $93,000. There is no cost sharing requirement, however additional priority points may be awarded for leveraging matching funds.

What is the project period?

The project must reasonably be expected to be completed within one full year after it has begun. All projects must be completed by September 30, 2028.

When are regular applications due?

Complete applications may be submitted in paper or electronic format, and must be received by 4:30 p.m. local time on June 30, 2026 in the USDA Rural Development state office where the project is located (June 15, 2026 for Strategic Economic and Community Development (SECD) applications.

The Notice of Funding Opportunity can be found here.

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.