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The United States Department of Agriculture (USDA) Rural Business Development Grants (RBDG) program has released their notice of solicitation of applications for Fiscal Year 2021. There is no maximum grant amount however grants generally range from $10,000 to $500,000. Applications deadlines vary as applications are administered by the state where the project is located. States must submit applications to USDA no later than March 31, 2021 at 4:30pm local time. Specific state deadlines may be found here.    

What is the purpose of USDA’s Rural Business Development Grants Program?

The purpose of the program is to promote economic development and job creation projects through the awarding of grant funds to eligible entities. The RBDG is a competitive grant designed to support targeted technical assistance, training, and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1 million in gross revenues. Programmatic activities are separated into enterprise or opportunity type grant activities.

• Business opportunity projects may be used to establish business support centers or provide funds for job training and leadership development in rural areas. Business opportunity projects must be consistent with any local and area-wide strategic plans for community and economic development, coordinated with other economic development activities in the project area, and consistent with any Rural Development State Strategic Plan. Business enterprise projects must be used to finance or develop small and emerging businesses in rural areas.
• Enterprise funded project purposes must be in compliance with 7 CFR 4280.417(a)(2) which includes the acquisition and development of land, access streets and roads, and the conversion or modernization of buildings, machinery and equipment.

Who is eligible to apply?

Eligible applicants for this program include:

• Towns
• Communities
• State agencies
• Authorities
• Nonprofit Corporations
• Institutions of Higher Education
• Federally recognized Tribes
• Rural Cooperatives

How may funds be used?

Enterprise type grant funds must be used on projects to benefit small and emerging businesses in rural areas as specified in the grant application. Uses may include:

• Training and technical assistance, such as project planning, business counseling/training, market research, feasibility studies, professional/technical reports, or product/service improvements
• Acquisition or development of land, easements, or rights of way; construction, conversion, renovation, of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities
• Pollution control and abatement
• Capitalization of revolving loan funds including funds that will make loans for start-ups and working capital
• Distance adult learning for job training and advancement
• Rural transportation improvement
• Community economic development
• Technology-based economic development
• Feasibility studies and business plans
• Leadership and entrepreneur training
• Rural business incubators
• Long-term business strategic planning

Opportunity type grant funding must be used for projects in rural areas and they can be used for:

• Community economic development
• Technology-based economic development
• Feasibility studies and business plans
• Leadership and entrepreneur training
• Rural business incubators
• Long-term business strategic planning

What are the funding levels for this program?

There is no maximum grant amount for enterprise or opportunity type grants; however, smaller requests are given higher priority. Generally, grants range from $10,000 up to $500,000. Total opportunity type grant funding is limited statutorily to up to 10% of the total RBDG annual funding.

Is there a match a match requirement or cost sharing?

There is no cost sharing requirement.

When is the grant program timeline?

Applications are due the USDA Rural Development State Office the project is located in by March 31, 2021 at 4:30pm local time. The anticipated award date is August 31, 2021 with the performance period of June 1, 2021 through September 30, 2023. A project must reasonably be expected to be completed within 1 full year after it has begun.

The Notice of Solicitation for Applications 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.