The Rural Business Development Grant from the U.S. Department of Agriculture provides assistance to rural areas and small towns for economic development and job creation. Funds are available for two types of projects – Opportunity Grants and Enterprise Grants.

There is no maximum request amount, but smaller requests will receive priority consideration. Awards are typically between $10,000 and $500,000. There is no cost share requirement.

Final applications are due February 28, 2025 at 4:30 p.m. local time. Applications are submitted through state offices which may have additional requirements and an earlier deadline.

Eligibility

Applicant

This grant opportunity is open to:

• Nonprofit entities
• Public bodies
• Government entities
• Federally recognized Native American tribes

Community

Only rural areas are eligible to benefit from this grant. The USDA defines a rural area as any area other than:

1. A city or town that has a population of greater than 50,000 inhabitants
2. The urbanized area contiguous and adjacent to such a city or town, as defined by the U.S. Bureau of the Census using the latest decennial census of the United States.

Opportunity grant applicants must also demonstrate a reasonable expectation for economic development as a result of the project.

Allowable Expenses

Enterprise Grants

Enterprise grant funds may be used for activities such as:

• Rural business incubators
• Distance learning for job training
• Leadership and entrepreneurship training
• Long-term strategic business planning
• Feasibility studies and business plans
• Training and technical assistance (i.e. business counseling, market research, technical reports)
• Capital improvements – land acquisition and development, construction, equipment
• Revolving loan funds
• Pollution control and abatement

Opportunity Grants

Opportunity grant funds may be used for:

• Rural business incubators
• Leadership and entrepreneurship training
• Long-term strategic business planning
• Feasibility studies and business plans

Evaluation

Applications will be evaluated on

• Evidence of local business job creation
• Economic need in the area
• Applicant experience with similar projects
• Consistency with local economic development priorities
• Percentage of non-federal funding already committed

Application Requirements

All applications must contain:

• Evidence of Legal Authority and Good Standing (i.e. organization bylaws, Articles of Incorporation, letter from Secretary of State)
• Financial statements for three most recent years
• Documentation of non-federal funds committed to the project
• Letters of Commitment from the business to receive assistance