The U. S. Department of Agriculture (USDA) and the Small Business Administration (SBA) announced a new, joint initiative, the Rural Business Investment Program (RBIP), on Press Release.

The purpose of the RBIP is 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 -- and will endeavor to license Rural Business Investment Companies (RBICs) through a competitive process see Program Announcement.

RBIC applicants must identify targeted Rural Areas and demonstrate how they would 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, RBIC applicants will be requested to address the following requirements:

• 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).

• 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.)

• 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”.

For more information see the RBIP Fact Sheet

If you are interested in applying as a RBIC, please first read the RBIP Rules and Regulations in 7 C.F.R. Part 4290( Federal Register, Rule; Federal Register, Notice) and the RBIP Program Announcement outlining the application and selection process.

RBIC Application

• Rural Business Investment Company (RBIC) Application, Part I, Management Assessment Questionnaire (MAQ) -- SBA Form 2241
• Rural Business Investment Company (RBIC) Application, Part II, Exhibits -- SBA Form 2242
• Exhibit F Directions
• Workbooks referenced in Exhibit F, SBA Form 2242
  • RBIC F 1
  • RBIC F 2
  • RBIC F 3
  • RBIC F 4
  • RBIC F 5
• Rural Business Investment Company (RBIC) Applicant Interview Questions – SBA Form 2243

NEW!   RBIP Mapping Tool!
 

Other Federal Government Resources helpful to applicants:

• Operational Assistance Grant guidance, OMB Circular A-110

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.

For more information, contact RBIP@sba.gov