Rural Development’s goal is to promote a dynamic business environment and create opportunities for rural employment. We work in partnership with the private sector and community-based organizations to provide financial assistance and business planning. We also provide technical assistance to rural businesses and cooperatives, conduct research into rural economic issues, and provide cooperative education material to the public.

Business and Cooperative Programs help fund projects that create or preserve quality jobs and/or promote a clean rural environment. The financial resources of Rural Development are often leveraged with those of other public and private credit source lenders to meet business and credit needs in under-served areas. Eligible borrowers may include individuals, corporations, partnerships, cooperatives, public bodies, non-profit corporations, and private companies.

Common Business Forms
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Business & Industry Guaranteed Loans are used to create jobs and stimulate rural economies by providing financial backing for rural businesses. Businesses apply to federal or state chartered approved banks, credit unions, savings and loan associations and Farm Credit System institutions. The funds can be used for most business purposes, except production agriculture, for acquisition, start-up and expansion of businesses that create rural employment. Assistance is available to businesses located in areas outside the boundary of cities of 50,000 or more and their immediately adjacent urban or urbanizing areas.
Learn more about Business & Industrial Guaranteed Loans


Intermediary Relending Loans are available to public bodies, non-profit corporations and cooperatives to finance business facilities and community development projects in rural areas and incorporated places with a population of fewer than 25,000 people. Rural Development makes loans to these intermediaries that provide loans to the ultimate recipients to develop community projects, establish or expand businesses, and create or save rural jobs.
Learn more about the Intermediary Relending Program


Rural Cooperative Development Grants are available to nonprofit corporations and institutions of higher learning to establish operating centers for the development of rural cooperatives.
Learn more about Cooperative Development Grants

Rural Business Enterprise Grants can assist public bodies and nonprofit corporations help small and emerging private business enterprises located in areas outside the boundary of a city of 50,000 or more and their immediately adjacent urban or urbanizing areas. Individual small businesses are not eligible to apply. Funds can be used to help these businesses by buying and developing land, establishing a revolving loan fund, and constructing buildings, access streets and roads, parking areas, utility and service extensions, etc. that facilitate small business development.
Learn more about Business Enterprise Grants.


Rural Economic Development Loans are available to electric and telephone utilities that were financed through the Rural Utilities program to promote economic development and job creation in rural areas. The electric or telephone utility can make loans to for-profit and non-profit businesses and public bodies at zero percent interest for 10 years.
Learn more about the Economic Development Loans
 

Rural Economic Development Grants are available to electric and telephone utilities financed through the Rural Utilities program to promote economic development and job creation projects through the operation of a revolving loan fund program. To establish the revolving loan fund, the utility is required to contribute to the fund in an amount equal to 20% of the grant.
Learn more about the Economic Development Grants

Rural Business Opportunity Grants are available to assist public bodies, non-profit corporations and cooperatives finance technical assistance for business development and economic development planning everywhere except cities of more than 50,000 and their contiguous or adjacent urbanizing areas. Individual small businesses are not eligible to apply. The grants can be used for activities such as leadership training, business support and economic development plans.
Learn more about Rural Business Opportunity Grants

Value Added Producer Grants are available to independent producers, farmer and rancher cooperatives, agricultural producer groups and majority controlled producer-based business ventures. The grants can be used for 1) planning purposes such as feasibility studies or business plans and 2) for working capital to help start the operations of a venture.
Learn more about the Value Added Program

For more information, contact a Rural Development Office near you.

USDA Rural Development is an equal opportunity lender. Click to see our non-discrimination statement.

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Revised on: August, 2008