The RBEG program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses, help fund business incubators, and help fund employment related adult education programs. To assist with business development, RBEGs may fund a broad array of activities.
Food processing equipment is an eligible expense.
According to the USDA, rural public entities (towns, communities, state agencies and authorities), Indian tribes and rural private nonprofit corporations are eligible to apply for funding. At least 51 percent of the outstanding interest in any project must have membership or be owned by U.S. citizens or resident aliens.
Rural is defined as any area other than a city or town that has a population of greater than 50,000 and the urbanized area contiguous and adjacent to such a city or town, according to the latest decennial census.
The MRFH is classified as a L3C, a for-profit business; nonprofits may serve as the applicant for the grant, even though the recipient is technically a for-profit entity.
Chamber director Susan Klein said, “The Mad River Valley Chamber was a perfect fit to apply for a Rural Business Enterprise Grant for the Mad River Food Hub. Grant requirements for the Food Hub included partnering with a nonprofit sponsoring organization with a focus on economic development and the creation of jobs in its community.”
The project has the support of the chamber as well as the Mad River Valley Localvores, Mad River Valley Planning District, The Conservation Partnership, and local farmers.
According to the USDA, eligible fund uses include the acquisition or development of land, easements, or rights of way; construction, conversion, renovation of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities; and pollution control and abatement.
Additional
uses include “capitalization of revolving loan funds including funds that will
make loans for start-ups and working capital; training and technical
assistance; distance adult learning for job training and advancement; rural
transportation improvement; and project planning. Any project funded under the
RBEG program should benefit small and emerging private businesses in rural
areas. Small and emerging private businesses are those that will employ 50 or
fewer new employees and have less than $1 million in projected gross revenues,”
according to the RBEG eligibility guidelines.
There is no required maximum level of grant funding. However, smaller projects
are given higher priority. Generally grants range from $10,000 up to $500,000.
Each year, Congress provides program funding as called for in the Federal
Budget. Fiscal year funding levels will be made available as soon as possible
after the beginning of each fiscal year.
{loadnavigation}
