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Rural Business Investment Program
Currently no applications for the RBIP are being accepted.
The Rural Business Investment Program (RBIP) is a joint initiative between the U. S. Department of Agriculture (USDA) and the Small Business Administration (SBA) (see initial Press Release).
The RBIP was created to promote economic development and job creation in rural areas. The program is similar to existing SBA venture capital programs – the Small Business Investment Company (SBIC) and New Markets Venture Capital (NMVC) programs -- endeavors to license Rural Business Investment Companies (RBICs) through a competitive process (for example please see the Program Announcement from the first competitive round).
RBICs must identify targeted Rural Areas and demonstrate how they will assist those areas through disciplined, profit-oriented investing in rural enterprises and through hands-on technical assistance to rural enterprises via Operational Assistance (OA) Grant funding.
Additionally, RBICs must address the following requirements:
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At least 75% of RBIC investments measured both by dollars invested and number must be made in Rural Business Concerns (i.e., an Enterprise whose principal office is located outside a standard metropolitan statistical area or within a community with a population of 50,000 or less).
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No more than 10% of investments measured both by number and dollars invested may be in Enterprises whose principal office is located in an urban area (defined by the Census as having a population of 150,000 or more.)
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At least 50% of RBIC investments (measured both by number and dollars invested) must be in “Smaller Enterprises,” and of those, at least 50% must be in “Small Business Concerns”.
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Licensed RBICs:
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Meritus Ventures, LP
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PO Box 1738
London, KY 40743
Website:
http://www.meritusventures.com
Phone: 606-864-5175
Fax: 606-864-5194
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Licensing Date: September 28, 2006
Targeted Rural Areas: Kentucky, Tennessee, Ohio, West Virginia, Virginia, North Carolina, South Carolina, Georgia, Alabama, Mississippi and Arkansas.
RBIP Rural Area Locator: To find out if you are located in a qualified rural area for purposes of the RBIP program, please refer to the RBIP mapping tool.
Additional information:
RBIP Rules and Regulations; 7 C.F.R. Part 4290 Federal Register, Rule
2004 RBIC Application
Other Federal Government Resources helpful to applicants:
The RBIC application is intended for a venture capital company who intends to be licensed as a RBIC and intends to raise $10 million in private equity capital.
Neither SBA nor USDA will be providing Federal grant assistance directly to small businesses or other entities under the RBIP. However, SBA has other programs that offer technical assistance in coordination with debt or equity financing. Visit SBA’s web site at
www.sba.gov
for more information.
Neither SBA nor USDA will be providing debt, debt guarantees, or equity financing directly to small businesses or other entities under the RBIP. Small businesses interested in such financing should visit SBA’s website at
www.sba.gov
or the USDA Rural Development website at
www.rurdev.usda.gov
to find a financing program appropriate to your small business needs.
Once RBICs are licensed and fully operational, small businesses and other entities interested in receiving financing and/or technical assistance from such RBICs should contact RBICs directly. Check back on this web site for information about licensed RBICs.
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