For Immediate Release
November 2, 2010
Contact: Raquel Valdez 1-888-385-1975
512-383-0025

USDA Announces Microloan Funding to Boost Business Lending and Job Creation and in Rural Areas

Austin/Dallas, Texas:  Agriculture Deputy Secretary Kathleen  Merrigan today announced on October 28 that USDA has selected recipients in 36 states to receive funds to make loans to boost small business development, create jobs, and strengthen rural communities. The Deputy Secretary made the announcement in Lexington, Kentucky, with one of the recipients. The funding is being provided through the Rural Microentreprenuer Assistance Program (RMAP), which was authorized by the Food, Conservation, and Energy Act of 2008 (Farm Bill).

 "This program provides direct support for small business formation and offers technical assistance and training to small rural businesses, Merrigan said. "

 This initiative continues the effort of the Obama Administration to rebuild and revitalize rural communities. In many cases, an entrepreneur needs only a small amount of money, a microloan, to get started. This program creates opportunities for small businesses to prosper by giving them access to capital and it also helps to create new off-farm income opportunities that help to support owners of small and mid-sized farm operations.

 In Texas, BCL of Texas was the only organization selected to receive a $500,000 loan and a $105,000 grant to provide financial and technical assistance and training to rural microentrepreneurs. The organization serves rural businesses throughout the state of Texas.

 The purpose of RMAP is to support the creation, development and ongoing success of rural microentrepreneurs and microenterprises. Under the program direct loans and grants are made to Microenterprise Development Organizations (MDOs). The MDO uses the loan funds to establish, or recapitalize an RMAP-funded rural microloan revolving fund.

 Eligible applicants may include microenterprises defined as a sole proprietorship llocated in a rural area or a business entity, located in a rural area, employing 10 people or fewer that are in need of $50,000 or less in business capital and/or in need of business based technical assistance and training. A microentrepreneur is defined as an owner and operator, or prospective owner and operator, of a microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under the RMAP.