7 U.S. Code § 2008s - Rural microentrepreneur assistance program
In this section:
(1) Indian tribe
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.
(3) Microenterprise development organization
The term “microenterprise development organization” means an organization that—
(ii) an Indian tribe, the tribal government of which certifies to the Secretary that—
(C) facilitates access to capital or another service described in subsection (b) for rural microenterprises; and
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).
(b) Rural microentrepreneur assistance program
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 purpose of the program is to provide microentrepreneurs with—
(A) In general
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.
(B) Loan terms
A loan made by the Secretary to a microenterprise development organization under this paragraph shall—
(C) Loan loss reserve fund
The Secretary shall require each microenterprise development organization that receives a loan under this paragraph to—
(A) Grants to support rural microenterprise development
(i) In general The Secretary shall make grants to microenterprise development organizations to—
(I) provide training, operational support, business planning, and market development assistance, and other related services to rural microentrepreneurs; and
(ii) Selection In making grants under clause (i), the Secretary shall—
(I) 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
(B) Grants to assist microentrepreneurs
(i) In general The Secretary shall make grants to microenterprise development organizations to provide marketing, management, and other technical assistance to microentrepreneurs that—
(ii) Maximum amount of grant A microenterprise development organization shall be eligible to receive an annual grant under this subparagraph in an amount equal to not more than 25 percent of the total outstanding balance of microloans made by the microenterprise development organization under paragraph (3), as of the date the grant is awarded.
(1) Cost share
(A) Federal share
Subject to subparagraph (B), the Federal share of the cost of a project funded under this section shall not exceed 75 percent.
(B) Matching requirement
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.
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.
(1) Mandatory funding
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended—
Source(Pub. L. 87–128, title III, § 379E, as added Pub. L. 110–234, title VI, § 6022,May 22, 2008, 122 Stat. 1173, and Pub. L. 110–246, § 4(a), title VI, § 6022,June 18, 2008, 122 Stat. 1664, 1934; amended Pub. L. 113–79, title VI, § 6023,Feb. 7, 2014, 128 Stat. 848.)
Pub. L. 110–234and Pub. L. 110–246enacted identical sections. Pub. L. 110–234was repealed by section 4(a) ofPub. L. 110–246.
2014—Subsec. (d)(1)(C). Pub. L. 113–79, § 6023(1), added subpar. (C).
Subsec. (d)(2). Pub. L. 113–79, § 6023(2), substituted “2018” for “2012”.