Rural Business Development Grant Fact Sheet

New Mexico
6200 Jefferson Street NE Room 255
Albuquerque, NM 87109
See “Contacts” section
Rural Business Enterprise Grant (RBDG)
Program Purpose
Grants made under this program will be made to
eligible entities for use in funding various business
opportunity and business enterprise projects that
serve rural areas. This program consolidates the
Rural Business Enterprise Grant and the Rural
Business Opportunity Grant.
Eligible Area
Communities of less than 50,000 population and not
contiguous to a community of 50,000 or more
population. For specific determination, refer to
Eligible Applicants
 Public bodies/Governmental entities including
states, counties, cities, authorities, districts, and
educational institutions
 Non-profit organizations
 Federally recognized tribal groups
Grants are not made directly to businesses.
Applicants must provide a current System of Awards
Management (SAM) registration number (CAGE
code) and a Dun and Bradstreet number (DUNS).
Eligible Projects. Projects must comply with either
the business opportunity type grant or a business
enterprise type grant. The applicant must identify
which type it is applying for.
Business Opportunity Type Grant
(up to 10% of the RBDG appropriation may be
devoted to this type of grant)
--Grant fund uses include:
 Identify and analyze business opportunities
that will use local rural materials or human
 Identify, train, and provide technical
assistance to benefit existing or prospective
rural entrepreneurs and managers;
 Establish Business Support Centers and
otherwise assist in the creation of new rural
 Conduct local community or multi-county
economic development planning;
 Conduct leadership training of existing or
prospective adult rural entrepreneurs and
 Establish centers for training, technology,
and trade that will provide training to rural
businesses in the utilization of interactive
communications technologies to develop
international trade opportunities and markets;
 Pay reasonable fees and charges for
professional services necessary to conduct
the technical assistance, training or planning
--Project results: Project must result in economic
development of a rural area
--Basis for success or failure: Application must
demonstrate a need for the project and include a
basis for determining the success or failure of the
project, show major elements of the project, and
outline procedures that will be taken to assess the
project’s impact at its conclusion.
--Local and area-wide strategic plans: Project must
be consistent with any local and area-wide strategic
plans for community and economic development
activities in the project area.
Business Enterprise Type Grant
--Grant fund uses. Grant funds may be used to
finance and/or develop small and emerging
businesses * in rural areas including, but not limited
 Acquisition and development of land,
easements, and rights-of way (no housing);
 Construction, conversion, enlargement,
repairs or modernization of buildings, plants,
equipment, access streets and roads,
parking areas, utilities, pollution control
facilities; real estate projects are subject to
an environmental review that can take as
long as 3 month, so please submit your
application soon so we can obligate at the
earliest possible date;
 Provision of loans for start-up operating costs
and working capital;
 Reasonable fees and charges for
professional services necessary for planning
and development of a project;
 Establishment of a revolving loan fund to
provide financial assistance to third parties;
 Establishment, expansion, and operation of
rural distance learning networks or
development of rural learning programs that
provide educational instruction or job training
instruction related to potential employment or
job advancements for adult students;
 Provision of technical assistance for small
and emerging businesses, including but not
limited to feasibility studies and business
Revised 3/27/2015
--Project results: Project must have a reasonable
prospect that it will result in development or financing
of a small and emerging business.
--Basis for success or failure (see description under
opportunity grant)
Purchase of a business incubator without
charging a fair market rental
Purchase of equipment for a recipient without
charging a fair market rental
*What Is A Small And Emerging Business?
Private businesses that will employ 50 or fewer new
employees and have less than $1 million in projected
gross revenues. At least 51% of the outstanding
ownership of the benefiting business must be either
citizens of the U.S. or reside in the U.S. after being
legally admitted for permanent residence.
Scoring considerations
 Leveraging
 Community conditions where area to be served
has experienced a major national disaster in the
last 3 years; economic distress; long-term
poverty; population decline
 Rural nature of population with higher points
going to more rural areas
 Areas of high unemployment
 Median household income less than statewide
 Applicant has substantial experience in
administering a rural economic development
 Commitment of funding for proposed project from
other sources
 Where a small business start-up or expansion is
 Job creation/support
 Amount of grant request where the most points
are given to a request of less than $100,000
 Points are awarded if no indirect costs are
 Discretionary point may be given to initial grants
regarding geographic area, state goals, and
special Secretary of Agriculture initiatives
Funds Cannot Be Used for the Following: For a
complete list, see the regulation.
 Agricultural
processing is eligible. This restriction does not
apply to commercial fishing, commercial
nurseries, forestry, growing mushrooms, or
 Housing
 Costs of preparing application
 Pay costs prior to application
 Pay for assistance to any private business
enterprise that does not create/support jobs in
 Pass through grants
Applications must include evidence of the applicant’s
experience in the type of activity proposed.
Applications must state who will be completing the
work of the grant. For a business enterprise type
grant, applications must provide information
regarding which specific small and emerging
businesses will be assisted. All applications must
show evidence of legal capacity, economic feasibility,
and financial responsibility.
This fact sheet is a summary of the grant program
and does not alter the language of the regulation,
which can be found in the Federal Register for March
25, 2015 at
Deadlines. Applicants are encouraged to consult
with Rural Development staff in advance of filing an
application (see Contacts).
Native American Set-Aside: Friday, May 1, 2015
All other applications: Wednesday, July 15, 2015
The deadline date is a received by date, not a mail
date. Applications received after the above dates
may not be processed for this funding cycle.
Applications must be received at:
USDA-Rural Development
6200 Jefferson NE
Albuquerque, NM 87109
Northern New Mexico
Andres Aragon, USDA-Rural Development
1927-A North 7 St
Las Vegas, NM 87701
505.425.3594 x 109
[email protected]
Southern New Mexico
Kathy Barrett, USDA-Rural Development
760 Stern Drive, Suite #139
Las Cruces, NM 88005
[email protected]
State Office, Albuquerque
Jesse Monfort Bopp, USDA-Rural Development
6200 Jefferson NE
Albuquerque, NM 87109
505.761.4952; 505.761.4950
[email protected]
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the
Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call
(866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).