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10.769 RURAL BUSINESS ENTERPRISE GRANTS

FEDERAL AGENCY
RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION
Consolidated Farm and Rural Development Act, as amended, Section 310B, Public Law 92-419, 7 U.S.C. 1989, Public Law 101- 624, Public Law 102-142, 7 U.S.C. 1932.

OBJECTIVES
To facilitate the development of small and emerging private business, industry, and related employment for improving the economy in rural communities.

TYPES OF ASSISTANCE
Project Grants.

USES AND USE RESTRICTIONS
Rural business enterprise grant (RBEG) funds may be used to create, expand or operate rural distance learning networks or programs that provide educational or job training instruction related to potential employment or job advancement to adult students; develop, construct or acquisition land, buildings, plants, equipment, access streets and roads, parking areas, utility extensions, necessary water supply and waste disposal facilities; refinancing; services and fees; and to establish a revolving loan fund. Television demonstration grant (TDG) funds may be used for television programming to demonstrate the effectiveness of providing information on agriculture and other issues of importance to farmers and other rural residents. All uses must assist a small and emerging private business enterprise except for the TDG Program.
ELIGIBILITY REQUIREMENTS


Beneficiary Eligibility
A small and emerging private business enterprise which will employ 50 or less new employees and has less than $1.0 million in projected gross revenue. Public bodies, private non- profit corporations, and Federally recognized Indian tribes receive the grant to assist a business. Grants are not made directly to the business.

Credentials/Documentation
Evidence of legal capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested.

APPLICATION AND AWARD PROCESS

Preapplication Coordination
The standard application forms as furnished by the Federal agency and required by OMB Circular Nos. A-110 and A-102 must be used for this program. An environmental assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedure
Preapplication Form SF-424 is filed at the Rural Development local office. The standard application forms as furnished by the Federal agency and required by OMB Circular Nos. A-110 and A-102 must be used for this program.

Award Procedure
After the preapplication has been reviewed by the RD local office, it is forwarded to the RD State Office for review and processing instructions. Following approval by the State Office, funds are made available to the local office for final delivery. Notification of awards must be made to the designated State Central Information Reception Agency.
Deadlines
None.

Range of Approval/Disapproval Time
30 to 90 days.

Appeals
If an application is rejected, the reasons for rejection are fully stated. Applicant may request a review of this decision from the next higher management level of Rural Business-Cooperative Service.

ASSISTANCE CONSIDERATIONS

Formula and Matching Requirements
Funds are allocated to States based on rural population and percent of nonmetropolitan per capita income. On occasion, the allocation to States may not be practical due to funding or administrative constraints. In these cases, funds will be controlled by the National Office.

Range and Average of Financial Assistance
$2,000 to $500,000. Average: $83,309.

INFORMATION CONTACTS

Regional or Local Office
Consult your telephone directory for RD local office number. If no listing, get in touch with appropriate Rural Development State Office listed in Appendix IV of the Catalog.