Capital Opportunities for Small Businesses - sbtdc

C A P I T A L O P P O R T U N I T I E S F O R SMA L L B U S I N E S S E S
Rural Business Investment Program (RBIP)
The Rural Business Investment Program (RBIP) promotes economic development in mostly rural areas by helping
to meet the equity capital investment needs of smaller enterprises located in such areas. The program is similar
to SBA venture capital programs – the Small Business Investment Company (SBIC) and New Markets Venture
Capital (NMVC) programs. USDA licenses newly formed for-profit venture capital companies as Rural Business
Investment Company's (RBICs) to make equity, and equity-like, investments mostly in smaller enterprises
located primarily in rural areas.
An applicant may be eligible to apply for an RBIC license if the applicant:
Is a newly formed for-profit entity or a newly formed for-profit subsidiary of such an entity;
Has a qualified management team with experience in relevant venture capital financing or community
development financing; and
Will invest in enterprises that will create wealth and job opportunities in rural areas, with an emphasis
on smaller enterprises.
Rural Lender Advantage
The Small/Rural Lender Advantage (S/RLA) initiative is designed to accommodate the unique loan processing
needs of small community/rural-based lenders by simplifying and streamlining loan application process and
procedures, particularly for smaller SBA loans. It is part of a broader SBA initiative to promote the economic
development of local communities, particularly those facing the challenges of population loss, economic
dislocation, and high unemployment.
Key Features of the Initiative:
A streamlined, simpler, and more user friendly 7(a) process for small loans ($350,000 or less)
One page application (two sided) for very small loans with key, but limited additional information
required for loans above $50,000
SBA guarantees 85 percent of loans of $150,000 or less and 75 percent of loans greater than $150,000
Loans centrally processed through SBA’s Standard 7(a) Loan Processing Center
Expedited SBA processing with routine loans processed within 3-5 days
Lenders can transmit applications via fax and eventually online
Simplified SBA loan eligibility questionnaire to help small or occasional lenders meet SBA’s eligibility
requirements
Training on SBA program requirements from local SBA offices
B&I Guaranteed Loan Program
If your business is located in a rural community, you may qualify for special financing. The U.S. Department of
Agriculture (USDA) currently maintains a Business and Industry (B&I) Guaranteed Loan Program. The USDA
provides guarantees of up to 80 percent of a loan made by a commercial lender.
Proceeds from such a loan may be used for:
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