7 U.S.C. § 2008s: Rural microentrepreneur assistance program

The term “Indian tribe” has the meaning given the term in section 5304 of title 25 . The term “microentrepreneur” means an owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under this section, as determined by the Secretary. a nonprofit entity; no microenterprise development organization serves the Indian tribe; and no rural microentrepreneur assistance program exists under the jurisdiction of the Indian tribe; or a public institution of higher education; provides training and technical assistance to rural microentrepreneurs; facilitates access to capital or another service described in subsection (b) for rural microenterprises; and has a demonstrated record of delivering services to rural microentrepreneurs, or an effective plan to develop a program to deliver services to rural microentrepreneurs, as determined by the Secretary. The term “microloan” means a business loan of not more than $50,000 that is provided to a rural microenterprise. The term “program” means the rural microentrepreneur assistance program established under subsection (b). a sole proprietorship located in a rural area; or a business entity with not more than 10 full-time-equivalent employees located in a rural area. The Secretary shall establish a rural microentrepreneur assistance program to provide loans and grants to support microentrepreneurs in the development and ongoing success of rural microenterprises. the skills necessary to establish new rural microenterprises; and continuing technical and financial assistance related to the successful operation of rural microenterprises. The Secretary shall make loans to microenterprise development organizations for the purpose of providing fixed interest rate microloans to microentrepreneurs for startup and growing rural microenterprises. be for a term not to exceed 20 years; and bear an annual interest rate of at least 1 percent. establish a loan loss reserve fund; and maintain the reserve fund in an amount equal to at least 5 percent of the outstanding balance of such loans owed by the microenterprise development organization, until all obligations owed to the Secretary under this paragraph are repaid. The Secretary may permit the deferral of payments on principal and interest due on a loan to a microenterprise development organization made under this paragraph for a 2-year period beginning on the date the loan is made. provide training, operational support, business planning, and market development assistance, and other related services to rural microentrepreneurs; and carry out such other projects and activities as the Secretary determines appropriate to further the purposes of the program. place an emphasis on microenterprise development organizations that serve microentrepreneurs that are located in rural areas that have suffered significant outward migration, as determined by the Secretary; and of varying sizes; and that serve racially and ethnically diverse populations. received a loan from the microenterprise development organization under paragraph (3); or are seeking a loan from the microenterprise development organization under paragraph (3). satisfactory performance by the microenterprise development organization under this section, and the availability of funding. Not more than 10 percent of a grant received by a microenterprise development organization for a fiscal year under this paragraph may be used to pay administrative expenses. Subject to subparagraph (B), the Federal share of the cost of a project funded under this section shall not exceed 75 percent. As a condition of any grant made under this subparagraph, the Secretary shall require the microenterprise development organization to match not less than 15 percent of the total amount of the grant in the form of matching funds, indirect costs, or in-kind goods or services. in cash (including through fees, grants (including community development block grants), and gifts); or in the form of in-kind contributions. At a minimum, not later than December 1 of each fiscal year, a microenterprise development organization that receives a loan or grant under this section shall provide to the Secretary such information as the Secretary may require to ensure that assistance provided under this section is used for the purposes for which the loan or grant was made. There are authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2019 through 2023.