Rural Business Investment Program
Program Objective
To promote economic development and create wealth and job opportunities among individuals living in rural areas and help to meet the equity capital investment needs primarily of smaller enterprises located in such areas.
Eligibility
Eligible Applicants
- Not-for-Profit Organization
- For-Profit Organization
- Small Business Person
An applicant is eligible to apply for an RBIC license if it meets the criteria in Subpart C of 7 CFR part 4290, which include but are not limited to: (1) the company is a newly formed for-profit entity or a newly formed for-profit subsidiary of such an entity; (2) the company has a qualified management team with experience in community development financing or relevant venture capital financing; and (3) the company will invest in enterprises that will create wealth and job opportunities in rural areas, with an emphasis on smaller enterprises.
How to Apply
Award Procedure
Applicants for RBIC designation will be selected for approval as an RBIC. Selected applicants then will have a certain period of time, specified by USDA but no more than 2 years, to raise its private capital. Those selected applicants that raise such resources by the applicable deadline and that meet other conditions established by USDA will receive a certification to operate as an RBIC.
Program details & compliance
Description
This program provides a Rural Business Investment Company (RBIC) license to newly formed developmental capital organizations to help meet the equity capital investment needs in rural communities.
Mission Categories
Primary: Small Business
Other categories:
Economic Development
Use of Funds
Allowed Uses
USDA certifies newly formed for-profit entities as Rural Business Investment Company's (RBIC)s . Recipients use funds from private investors to make equity capital investments mostly in smaller enterprises located primarily in rural areas.
Required Documentation
Evidence of legal capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements