On September 29, Sens. Pete Ricketts (R-NE) and Tina Smith (D-MN, and Reps. Zach Nunn (R-IA) and Rep. Angie Craig (D-MN) introduced the Rural Microentrepreneur Assistance Act (RMAA) (S.2996 and H.R. 5284), showing bipartisan support for rural small businesses and entrepreneurs as Congress prepares to debate the nation’s next Farm Bill.
Specifically, the legislation would extend and enhance the U.S. Department of Agriculture’s Rural Microentrepreneur Assistance Program (RMAP). Through providing much-needed resources, training, and technical assistance to aspiring microentrepreneurs, Sen. Ricketts illustrates how this legislation holds tremendous potential for rural America, explaining:
"Created in the 2008 Farm Bill, RMAP provides low-interest loans and grants for technical assistance to Microenterprise Development Organizations (MDOs). MDOs then provide loans to microentrepreneurs in rural areas who lack access to capital from traditional lenders for startup and development costs.
Currently, loans are limited to 75 percent of the project cost up to $50,000. The loans are limited to use for certain start-up, expansion, new equipment purchases, or facility improvement costs. This can make it very difficult to utilize existing infrastructure in rural communities. The Rural Microentrepreneur Assistance Act proposes to improve the existing program by:
Modifying the approved use of funds to allow for the renovation of existing buildings, creating an expedient and financially responsible path to update and occupy existing buildings, including those on rural main streets;
Increasing the percentage of project costs eligible for a loan from 75 percent to 100 percent of project costs;
Increasing the maximum loan amount available to entrepreneurs from $50,000 to $75,000; and
Extending the program through 2028."
IEDC applauds the introduction of this legislation and encourages its inclusion in a new Farm Bill.