7 USC 2008s - Rural microentrepreneur assistance program

U.S Code last checked for updates: Apr 29, 2024

§ 2008s.

Rural microentrepreneur assistance program

(a)

Definitions

In this section:

(1)

Indian tribe

(2)

Microentrepreneur

(3)

Microenterprise development organization

The term “microenterprise development organization” means an organization that—

(A)

is—

(i)

a nonprofit entity;

(ii)

an Indian tribe, the tribal government of which certifies to the Secretary that—

(I)

no microenterprise development organization serves the Indian tribe; and

(II)

no rural microentrepreneur assistance program exists under the jurisdiction of the Indian tribe; or

(iii)

a public institution of higher education;

(B)

provides training and technical assistance to rural microentrepreneurs;

(C)

facilitates access to capital or another service described in subsection (b) for rural microenterprises; and

(D)

has a demonstrated record of delivering services to rural microentrepreneurs, or an effective plan to develop a program to deliver services to rural microentrepreneurs, as determined by the Secretary.

(4)

Microloan

(5)

Program

(6)

Rural microenterprise

The term “rural microenterprise” means—

(A)

a sole proprietorship located in a rural area; or

(B)

a business entity with not more than 10 full-time-equivalent employees located in a rural area.

(b)

Rural microentrepreneur assistance program

(1)

Establishment

(2)

Purpose

The purpose of the program is to provide microentrepreneurs with—

(A)

the skills necessary to establish new rural microenterprises; and

(B)

continuing technical and financial assistance related to the successful operation of rural microenterprises.

(3)

Loans

(A)

In general

(B)

Loan terms

A loan made by the Secretary to a microenterprise development organization under this paragraph shall—

(i)

be for a term not to exceed 20 years; and

(ii)

bear an annual interest rate of at least 1 percent.

(C)

Loan loss reserve fund

The Secretary shall require each microenterprise development organization that receives a loan under this paragraph to—

(i)

establish a loan loss reserve fund; and

(ii)

maintain the reserve fund in an amount equal to at least 5 percent of the outstanding balance of such loans owed by the microenterprise development organization, until all obligations owed to the Secretary under this paragraph are repaid.

(D)

Deferral of interest and principal

(4)

Grants

(A)

Grants to support rural microenterprise development

(i)

In general

The Secretary shall make grants to microenterprise development organizations to—

(I)

provide training, operational support, business planning, and market development assistance, and other related services to rural microentrepreneurs; and

(II)

carry out such other projects and activities as the Secretary determines appropriate to further the purposes of the program.

(ii)

Selection

In making grants under clause (i), the Secretary shall—

(I)

place an emphasis on microenterprise development organizations that serve microentrepreneurs that are located in rural areas that have suffered significant outward migration, as determined by the Secretary; and

(II)

ensure, to the maximum extent practicable, that grant recipients include microenterprise development organizations—

(aa)

of varying sizes; and

(bb)

that serve racially and ethnically diverse populations.

(B)

Grants to assist microentrepreneurs

(i)

In general

The Secretary shall make grants to microenterprise development organizations to provide marketing, management, and other technical assistance to microentrepreneurs that—

(I)

received a loan from the microenterprise development organization under paragraph (3); or

(II)

are seeking a loan from the microenterprise development organization under paragraph (3).

(ii)

Amount of grant

A microenterprise development organization shall be eligible to receive an annual grant under this subparagraph in an amount equal to not less than 20 percent and not more than 25 percent of the total outstanding balance of microloans made by the microenterprise development organization under paragraph (3), as of the date the grant is awarded, subject to—

(I)

satisfactory performance by the microenterprise development organization under this section, and

(II)

the availability of funding.

(C)

Administrative expenses

(c)

Administration

(1)

Cost share

(A)

Federal share

(B)

Matching requirement

(C)

Form of non-Federal share

The non-Federal share of the cost of a project funded under this section may be provided—

(i)

in cash (including through fees, grants (including community development block grants), and gifts); or

(ii)

in the form of in-kind contributions.

(2)

Oversight

(d)

Authorization of appropriations

(Pub. L. 87–128, title III, § 379E, as added Pub. L. 110–234, title VI, § 6022, May 22, 2008, 122 Stat. 1173, and Pub. L. 110–246, § 4(a), title VI, § 6022, June 18, 2008, 122 Stat. 1664, 1934; amended Pub. L. 113–79, title VI, § 6023, Feb. 7, 2014, 128 Stat. 848; Pub. L. 115–334, title VI, § 6422, Dec. 20, 2018, 132 Stat. 4765.)

cite as: 7 USC 2008s