Rural Microentrepreneur Assistance Program

Provide rural microentrepreneurs with the skills necessary to establish new rural microenterprises and to provide continuing technical and financial assistance related to the successful operation of rural microenterprises. (1) Make direct loans to Microenterprise Development Organizations (MDO), which may be a non-profit entity, Indian Tribe or public institution of higher education for the purpose of capitalizing microloan revolving funds to provide fixed interest rate business loans of the lesser of $50,000 or 20 percent of the amount loaned to an MDO for startup and growing rural microenterprises. The maximum loan amount an MDO may borrower under this program will not exceed $500,000. (2) Make grants to MDOs to support rural microenterprise development. These grants are known as operational enhancement activities or services grants. These grants will be used to seek training and other enhancement services to strengthen their own organizations. These grants will not exceed 10 percent of available funding, whichever is less in any given year. (3) Any MDO that receives a loan under this program is eligible for a grant to assist microentrepreneurs who have received or are seeking a microloan from an MDO. These grants are known as technical assistance (TA) grants and may be used by an MDO to provide marketing, management, and other technical assistance to microentrepreneurs. TA grants will provide assistance specifically tailored to the needs of one or more microentrepreneurs.