The Rural Microentrepreneur Assistance Program (RMAP) is a new program administered through the U.S. Department of Agriculture. In two short years, it has proven to be a solid job creator in rural America. The program provides loan capital and technical assistance grants to small business development organizations to make loans and provide support to startup and existing rural businesses.

RMAP loan funds are unique. They can be used to purchase real estate and allow for a loan term of up to 10 years. They are filling a previously unmet financial need.

The Center for Rural Affairs’ Rural Enterprise Assistance Project (REAP) received an RMAP award in December 2010. In less than a year, REAP placed 14 loans under the program totaling $559,000, creating 18 jobs, and saving 9 jobs. The entrepreneurs receiving these loans were unable to receive business financing through traditional sources.

One example is Guy and Jennifer Lewis. The couple had long dreamed of owning and operating a pottery business, but couldn’t get a loan from their bank. Valley Fire Pottery and Gallery is a new startup business at Ord, Nebraska. The gallery will be a center for painted ceramics, pottery classes, art displays, and a coffee shop and studio.

Valley Fire Pottery would not exist if not for financing from RMAP and a loan from the local Ord Revolving Loan Fund. These funds allowed the couple to purchase an empty building and the necessary business equipment and supplies. This created jobs, filled an empty location, and created a new business to benefit the economy.

More than 90 small business development organizations in 40 states have received awards under the program for similar work in their state.

Program Funding

Unfortunately, last November Congress passed the funding bill for fiscal year 2012. That bill cuts funding for the program and restricts USDA from spending staff resources to carry it out.

The impact of this move by Congress is that hundreds of entrepreneurs will not receive the loans or training from this otherwise successful program. For some, it may mean closing their doors.

The good news is that the program still exists, and existing loans are already helping rural entrepreneurs. It will take another act of Congress to restore funding for the program. We will let you know when to call legislators in support of this successful program.

The Rural Microentrepreneur Assistance Program can continue to make a positive impact for small businesses in communities across the country. When rural entrepreneurs have the skills and funds to make their ventures successful, they create the jobs we need for a healthy economy and vibrant communities. Congress can do their part by restoring funding for the program.

Questions or comments? Contact Jeff Reynolds at jeffr@cfra.org or 402.656.3091 or Steph Larsen at StephL@cfra.org or 402.687.2103, ext. 1014.