LMR JUNE 2021

Rural Development
USDA EXPANDS ACCESS TO CAPITAL FOR
VERY SMALL RURAL BUSINESSES
BY USDA RURAL DEVELOPMENT ACTING STATE DIRECTOR DIANA SMITH
USDA Rural Development
implemented a series of actions
to make it easier for very small rural businesses to get
access to needed capital to thrive.
The Department published a final rule outlining
changes to the Rural Microentrepreneur Assistance
Program (RMAP). This program provides loans and
grants to microenterprise development organizations
to help them establish revolving loan programs to
assist microenterprises, businesses with 10 or fewer
full-time employees. It also provides annual funding
to development organizations to conduct training and
provide technical assistance to microloan borrowers.
USDA made the improvements to implement changes
required in the 2018 Farm Bill and to make the program
more effective, more user-friendly, and more consistent
with other USDA business programs. Among other
things, these improvements:
• Allow microlenders to receive their initial technical
assistance grant in an amount up
to 25 percent of their new loan
amount. The maximum loan amount
remains at $500,000. The previous
grant limit was 25 percent of the
first $400,000 plus 5 percent of the
amount over $400,000.
• Allow a microlender’s
technical assistance funds to
be replenished annually to a
CONTINUED FROM PAGE 20: LEMONADE
studies were performed to identify any abnormalities
in the water, sewer, and gas systems. Once Baker
crafted a financing plan to address the recommended
infrastructure improvement projects, COVID-19 hit, and
the momentum slowed down!
Now, things are back on track. To date, the City of
Baker was awarded the Community Development Block
Grant (“CDBG”) to finance various utility infrastructure
projects. In addition, the City is in the final stages of
obtaining a loan to financially cover the utility systems
improvements not covered by the grant.
I would like to thank the Town of Leonville and the City
minimum of 20 percent of its outstanding loans to
small businesses, not to exceed 25 percent of its loan
balance, subject to the availability of appropriated
funds. The maximum percentage is not changed.
Previously, there was no minimum percentage of
grant funds to a microlender.
• Give microlenders the discretion to request loan
funds more often than quarterly to meet the
microlender’s loan demand.
• Change the definitions of “close relative,” “Indian
tribe” and “rural or rural area” to match the
definitions in other USDA Rural Development
programs.
• Increase program eligibility by reducing the
minimum application priority score to be eligible for
program funding.
• Add clarifying language emphasizing that the total
outstanding loan balance from a lender to any one
microborrower may not exceed $50,000.
The changes take effect May 14, 2021.
For additional information, see page
26348 of the May 14, 2021 Federal
Register. Program applications are
accepted on a continuous basis. To
learn more about this opportunity,
please visit www.rd.usda.gov/la for
business contacts or call (318) 473-
9760. We are here to help. Follow RD
on Twitter @RD_Louisiana.
of Baker for allowing Government Consultants, Inc. the
opportunity to share their stories and for serving as
their Municipal Advisor. Both entities displayed tenacity
and resilience during a very unpredictable time in our
world.
If you have any questions or concerns about refunding
opportunities or need assistance with developing
a financing plan for capital projects, please do not
hesitate to reach out to Government Consultants, Inc.
(Editor’s Note: DeDe has 12 years of experience in
Public Finance, with over three years as a Registered
Municipal Advisor.)
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LMR | JUNE 2021