7 U.S.C. § 2008S
Section 2008s · Rural microentrepreneur assistance program
Current version, with additions and removals from the June 18, 2008 version.
In this section:
In this section:
(1) Indian tribe
(1) Indian tribe
(2) Microentrepreneur
(2) Microentrepreneur
The term “microentrepreneur” means an owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under this section, as determined by the Secretary.
The term "microentrepreneur" means an owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under this section, as determined by the Secretary.
(3) Microenterprise development organization
(3) Microenterprise development organization
The term “microenterprise development organization” means an organization that—
The term "microenterprise development organization" means an organization that—
(A) is—
(A) is—
(i) a nonprofit entity;
(i) a nonprofit entity;
(ii) an Indian tribe, the tribal government of which certifies to the Secretary that—
(ii) an Indian tribe, the tribal government of which certifies to the Secretary that—
(I) no microenterprise development organization serves the Indian tribe; and
(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
(II) no rural microentrepreneur assistance program exists under the jurisdiction of the Indian tribe; or
(iii) a public institution of higher education;
(iii) a public institution of higher education;
(B) provides training and technical assistance to rural microentrepreneurs;
(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
(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.
(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
(4) Microloan
The term “microloan” means a business loan of not more than $50,000 that is provided to a rural microenterprise.
The term "microloan" means a business loan of not more than $50,000 that is provided to a rural microenterprise.
(5) Program
(5) Program
The term “program” means the rural microentrepreneur assistance program established under subsection (b).
The term "program" means the rural microentrepreneur assistance program established under subsection (b).
(6) Rural microenterprise
(6) Rural microenterprise
The term “rural microenterprise” means—
The term "rural microenterprise" means—
(A) a sole proprietorship located in a rural area; or
(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) a business entity with not more than 10 full-time-equivalent employees located in a rural area.
(1) Establishment
(1) Establishment
The Secretary shall establish a rural microentrepreneur assistance program to provide loans and grants to support microentrepreneurs in the development and ongoing success of rural microenterprises.
The Secretary shall establish a rural microentrepreneur assistance program to provide loans and grants to support microentrepreneurs in the development and ongoing success of rural microenterprises.
(2) Purpose
(2) Purpose
The purpose of the program is to provide microentrepreneurs with—
The purpose of the program is to provide microentrepreneurs with—
(A) the skills necessary to establish new rural microenterprises; and
(A) the skills necessary to establish new rural microenterprises; and
(B) continuing technical and financial assistance related to the successful operation of rural microenterprises.
(B) continuing technical and financial assistance related to the successful operation of rural microenterprises.
(3) Loans
(3) Loans
(A) In general
(A) In general
The Secretary shall make loans to microenterprise development organizations for the purpose of providing fixed interest rate microloans to microentrepreneurs for startup and growing rural microenterprises.
The Secretary shall make loans to microenterprise development organizations for the purpose of providing fixed interest rate microloans to microentrepreneurs for startup and growing rural microenterprises.
(B) Loan terms
(B) Loan terms
A loan made by the Secretary to a microenterprise development organization under this paragraph shall—
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
(i) be for a term not to exceed 20 years; and
(ii) bear an annual interest rate of at least 1 percent.
(ii) bear an annual interest rate of at least 1 percent.
(C) Loan loss reserve fund
(C) Loan loss reserve fund
The Secretary shall require each microenterprise development organization that receives a loan under this paragraph to—
The Secretary shall require each microenterprise development organization that receives a loan under this paragraph to—
(i) establish a loan loss reserve fund; and
(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.
(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
(D) Deferral of interest and principal
The Secretary may permit the deferral of payments on principal and interest due on a loan to a microenterprise development organization made under this paragraph for a 2-year period beginning on the date the loan is made.
The Secretary may permit the deferral of payments on principal and interest due on a loan to a microenterprise development organization made under this paragraph for a 2-year period beginning on the date the loan is made.
(4) Grants
(4) Grants
(A) Grants to support rural microenterprise development
(A) Grants to support rural microenterprise development
(i) In general
(i) In general
The Secretary shall make grants to microenterprise development organizations to—
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
(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) carry out such other projects and activities as the Secretary determines appropriate to further the purposes of the program.
(ii) Selection
(ii) Selection
In making grants under clause (i), the Secretary shall—
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
(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—
(II) ensure, to the maximum extent practicable, that grant recipients include microenterprise development organizations—
(aa) of varying sizes; and
(aa) of varying sizes; and
(bb) that serve racially and ethnically diverse populations.
(bb) that serve racially and ethnically diverse populations.
(B) Grants to assist microentrepreneurs
(B) Grants to assist microentrepreneurs
(i) In general
(i) In general
The Secretary shall make grants to microenterprise development organizations to provide marketing, management, and other technical assistance to microentrepreneurs that—
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
(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) are seeking a loan from the microenterprise development organization under paragraph (3).
(I) satisfactory performance by the microenterprise development organization under this section, and
(II) the availability of funding.
(C) Administrative expenses
(C) Administrative expenses
Not more than 10 percent of a grant received by a microenterprise development organization for a fiscal year under this paragraph may be used to pay administrative expenses.
Not more than 10 percent of a grant received by a microenterprise development organization for a fiscal year under this paragraph may be used to pay administrative expenses.
(1) Cost share
(1) Cost share
(A) Federal share
(A) Federal share
Subject to subparagraph (B), the Federal share of the cost of a project funded under this section shall not exceed 75 percent.
Subject to subparagraph (B), the Federal share of the cost of a project funded under this section shall not exceed 75 percent.
(B) Matching requirement
(B) Matching requirement
As a condition of any grant made under this subparagraph, the Secretary shall require the microenterprise development organization to match not less than 15 percent of the total amount of the grant in the form of matching funds, indirect costs, or in-kind goods or services.
As a condition of any grant made under this subparagraph, the Secretary shall require the microenterprise development organization to match not less than 15 percent of the total amount of the grant in the form of matching funds, indirect costs, or in-kind goods or services.
(C) Form of non-Federal share
(C) Form of non-Federal share
The non-Federal share of the cost of a project funded under this section may be provided—
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
(i) in cash (including through fees, grants (including community development block grants), and gifts); or
(ii) in the form of in-kind contributions.
(ii) in the form of in-kind contributions.
(2) Oversight
(2) Oversight
At a minimum, not later than December 1 of each fiscal year, a microenterprise development organization that receives a loan or grant under this section shall provide to the Secretary such information as the Secretary may require to ensure that assistance provided under this section is used for the purposes for which the loan or grant was made.
At a minimum, not later than December 1 of each fiscal year, a microenterprise development organization that receives a loan or grant under this section shall provide to the Secretary such information as the Secretary may require to ensure that assistance provided under this section is used for the purposes for which the loan or grant was made.
(1) Mandatory funding
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended—
(A) $4,000,000 for each of fiscal years 2009 through 2011; and
(B) $3,000,000 for fiscal year 2012.
(2) Discretionary funding