RURAL BUSINESS INVESTMENT PROGRAM
• An amendment to the Farm Bill directed the USDA to establish a Rural
Business Investment Program (RBIP) to promote economic development and
entered into an interagency agreement to design and
manage the program together.
job creation in rural areas.
• The USDA and the SBA
rall Size and Cost of the Program
• RBIP program and administrative costs will be paid for from
USDA’s Commodity Credit Corporation.
the funds of
illion in RBIP
tees would be made available the program.
funding will support the creation of three RBICs, each with required
• Under the President’s FY 2005 budget request, a total of $60 m
private equity capital of $10 million and another $20 million of
• Each licensed RBIC will receive $1 million of Operational Assistance grant
nical assistance to qualified enterprises in which the
Size and Scope of RBIC Investments
funding to provide tech
RBIC either has invested or intends to invest.
• There will be no requirement for matching funds to receive the gr
• RBICs may invest only in “enterprises,” which are individuals or legal entities
engaged in a business or commercial activity, regardless of whether they are
operating for profit or are subject to any legal restrictions on the distribution of
profits to their owners, members, or suppliers of their equity or quasi-equity
capital. Enterprises include public, private, or cooperative for-p
profit organizations, and for-profit or non-profit businesses con
Indian tribe o
rofit or non-
trolled by an
n a Federal or State reservation or other federally recognized
Indian tribal group.
is located in a
rural area (i.e., outside a standard metropolitan statistical area or within a
dollars invested may be in enterprises whose principal office is located in a
ation of more
r and dollars