Boosting Rural Economies

Rural enterprises play a pivotal role in sustaining local economies and communities. Get acquainted with the SBA’s range of resources available for rural businesses.

COVID-19 Relief

The COVID-19 pandemic has caused unprecedented disruptions to businesses across the US. The Small Business Administration (SBA) is offering several programs, including Economic Injury Disaster Loans and SBA debt relief for existing borrowers, to aid in recovery efforts.

Financing Alternatives

The 7(a) loan program, the SBA’s primary financing option, provides small businesses with the means to purchase property, equipment, inventory, or inject capital into their operations. If traditional financing is not an option, check out the Lender Match Lender Search tool to locate SBA lenders in your vicinity.

Fixed-Rate Loans with Certified Development Companies

For those unable to secure conventional funding, 504 loans present an attractive alternative for purchasing/renovating property or acquiring heavy machinery. The loans are offered at competitive rates through a lender and a Certified Development Company (CDC). Contact your local CDC to learn more about eligibility requirements and loan application procedures.

Microcredit Options

Working capital, equipment, furniture, and facility expenses are just a few of the costs that eligible small businesses can cover with microcredits. Loans ranging from $500 to $50,000 are available, and you can also access free business advice from microlenders. Use the resource for finding local assistance to locate a microlending broker near you or contact your local SBA district office for more information.

Boosting Export Opportunities

Do you need financing to support your small business’ export initiatives? The SBA’s international sales programs offer solutions for short-term or long-term expenses associated with selling products or services abroad. Use loan proceeds to finance international sales or fixed assets that enhance your global competitiveness. Secure a line of credit before finalizing a contract or sale, and appropriate financing will be available when you win your contract.

If your business has been in operation for at least a year, ask your SBA regional financial director about the export working capital loan program.

The International Trade Loan Program is also available to support exporters struggling with competition from foreign companies, allowing you to expand your global reach.

SBA-USDA Partnership

In April 2017, former President Trump issued an executive order to enhance agriculture and rural prosperity. To support this effort, the SBA entered into a memorandum of understanding with the US Department of Agriculture (USDA) to collaborate and coordinate resources.

The SBA is focused on increasing access to capital, improving investment opportunities for public and private entities in rural America, supporting the export of rural businesses’ products worldwide, and strengthening the resilience of rural communities through small business development. These actions aim to achieve the President’s vision of a rural America with world-class resources, tools, and support necessary to build resilient and sustainable communities.

Empowering Rural Zones

The SBA is committed to promoting economic growth and prosperity in underserved communities through two significant location-based initiatives:

Tax Incentives for Investment

Established by the Tax Cuts and Jobs Act of 2017, the opportunity zone program permits states to designate specific low-income census tracts as opportunity zones. Investors can defer, reduce, and ultimately eliminate capital gains taxes by investing in eligible businesses located within these zones for specific periods. The goal of this program is to direct realized capital gains towards communities that have traditionally lacked access to such investments while rewarding investors who invest long-term in underserved areas. For more information, visit the US Department of Housing and Urban Development Opportunity Zones website.

Unlocking Opportunities for Small Businesses in HUBZones

Businesses operating in areas with little commercial activity, known as HUBZones, can gain special access to federal contracts. The certification process for this program has been streamlined, making it easier to apply for and maintain certification. To qualify, your small business must meet the following requirements:

• Be at least 51% owned and controlled by U.S. citizens, a community development corporation, agricultural cooperative, Indian tribe, Alaska Indian corporation, or Native Hawaiian organization;
• Have a main office located in a HUBZone. You can easily check if your business qualifies by entering your address into our interactive map at maps.certify.sba.gov/hubzone/map (available only in English);
• Have at least 35% of your employees residing in a HUBZone for at least 180 days prior to starting the application.

Driving Innovation through Small Businesses

The future of our country’s innovation largely depends on small businesses and startups. Independent entrepreneurs in rural areas often face difficulties in securing funding sources, particularly in the earliest stages of research. The Small Business Innovation Research (SBIR) and Technology Transfer (STTR) Programs for small companies are designed to meet this need by providing funding opportunities.

The US Seed Fund

The US Seed Fund, also known as the SBIR and STTR Programs, provides more than $4 billion annually in start-up capital through a competitive award process. Each year, participating federal companies announce research areas that address their development needs. The funding agency does not take an equity position nor become an owner of your business. The federal government protects personal data rights and ensures the ability to win third-party contracts directly or from sole sources. Some agencies provide resources in addition to funding. For instance, the SBIR research programs offer various funding opportunities, useful program tutorials, and news about past winners such as Qualcomm, iRobot, Illumina, and Symantec. Use the Resource Locator to identify state and regional resources and programs to help you with grant preparation, marketing, and business counseling in your community.

Boosting State and Regional Programs through the FAST Initiative

The FAST Initiative is a collaborative program between the federal and state governments that provides one-year grants to organizations that aid in increasing the number of proposals submitted to Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These grants also include technical guidance and support to help award recipients effectively commercialize their technologies. The impact of this program is particularly significant in rural states with limited access to networks and resources that can assist applicants and awardees with their proposals. Through the FAST Initiative, organizations are empowered to facilitate the growth of state and regional programs and foster innovation across diverse industries.