WASHINGTON, June 2, 2004 – Agriculture Secretary Ann M. Veneman and Small Business
Administration Administrator Hector V. Barreto today announced an Administration
effort to stimulate rural business development and jobs by providing greater
access to venture capital investment funds. The SBA, on behalf of USDA,
will enable venture capital companies to offer access to capital to rural
enterprises under a newly created business and jobs initiative called the
Rural Business Investment Program (RBIP).
“This new initiative supports President
Bush’s efforts to build a strong foundation for business development
and job growth to serve as economic stimulus in rural areas,” Veneman
said. “This capital will help to create or expand rural business
ventures needed for a strong rural economy and job opportunities.”
“The RBIP program will help to create
an environment in which small rural businesses can grow and create jobs,”
Barreto said. “President Bush’s leadership on this important
issue will make a real difference in the lives of small businesses in
rural areas.”
USDA and SBA will publish in the Federal
Register guidelines for making application to the new program. In general,
with funding provided by USDA, the RBIP will allow newly formed venture
capital investment companies to leverage private capital funds with government
financial assistance and to obtain government grant resources for technical
assistance. The RBIP will increase the amount of capital available for
investment in rural American businesses, and will provide a new resource
for technical assistance to such businesses.
Created by the 2002 Farm Bill, RBIP will
license Rural Business Investment Companies (RBICs) to support up to $60
million in guaranteed RBIC debentures based on the Bush Administration’s
Fiscal Year 2005 budget. The Rural Business Investment Program augments
investments already being made in rural areas. By licensing qualified
management teams and structuring the RBIP appropriately, this new program
can contribute significantly to the federal government’s efforts
to encourage private risk-taking and investment in rural America.
#
|