§2008s Rural Microentrepreneur Assistance Program

Summary

Creates a program that gives loans and grants to help people start and run very small businesses in rural areas. The program pays for training, business help, and access to small business loans. The Secretary provides loans to local nonprofit or public groups so they can make fixed-rate microloans of up to $50,000 to rural microbusinesses. Loans from the Secretary to those groups can last up to 20 years and must carry at least a 1% yearly interest rate. Each group must keep a reserve equal to at least 5% of its outstanding loan balance until it pays back the Secretary. The Secretary can allow a 2-year pause on paying principal and interest when a loan is first made. Grants help groups offer training, planning, marketing, and other technical help; some grants must focus on places with big population loss and on serving diverse communities. Grants that support borrowers must equal between 20% and 25% of the group’s outstanding microloans when the grant is given, if funding and performance allow. No more than 10% of a grant can pay administrative costs. The federal share of project costs can be up to 75%, and grant recipients must provide at least 15% matching funds in cash, indirect costs, or in-kind. Groups must give the Secretary required information by December 1 each year. Congress authorized $20,000,000 each year for fiscal years 2019 through 2023 to run this program. Indian tribe: defined under title 25, section 5304. Microentrepreneur: an owner or would-be owner of a rural microbusiness who needs help. Microenterprise development organization: a nonprofit, certain tribal governments, or public college that trains and helps rural microbusinesses and provides capital access. Microloan: a business loan of no more than $50,000. Program: the rural microentrepreneur assistance program. Rural microenterprise: a sole proprietor in a rural area or a business with no more than 10 full-time-equivalent employees in a rural area.