USDA RURAL BUSINESS INVESTMENT PROGRAM

The Rural Business Investment Program provides access to capital that is vital to businesses and often is scarce in rural areas through newly formed venture capital organizations.

An applicant must be a newly formed venture capital organization (the “Program Applicant”).

A successful Program Applicant (which is known as a “Rural Business Investment Company”) must use the proceeds of its Rural Business Investment Program award as follows: (a) at least 75% of the proceeds must be invested in rural areas with a population of 50,000 or less; (b) at least 50% of the proceeds must be invested in smaller enterprises; and (c) no more than 10% of the proceeds may be invested in urban areas.