USDA Rural Microentrepreneur Assistance Program (RMAP)
USDA Rural Development
Via MDO: loans up to $50K
Rural microbusiness funding through local nonprofits
USDA program that funds Microenterprise Development Organizations (MDOs) — nonprofit lenders and community development financial institutions — to provide loans and technical assistance to rural microbusinesses with 10 or fewer employees. Individual microbusinesses do NOT apply directly to USDA; they apply through a certified MDO in their state. USDA awards MDOs grants (up to $170,000 for technical assistance) and loan capital ($50K–$500K per MDO), who then relend at reduced rates to rural micro-entrepreneurs.
- Funding type
- Program
- Level
- Federal
- Amount range
- $5,000 – $50,000
- Realistic amount
- Typical microbusiness loan from an MDO ranges $10,000–$35,000 at below-market interest rates. Microenterprise grants (di…
- Deadline
- MDO applications: annual cycle, typically spring NOFO. Microbusiness applications to local MDOs: rolling, varies by MDO. Contact your state USDA Rural Development office for current MDO list and availability.
- Status
- between-intakes
- States
- Nationwide
- Payment model
- advance
Who qualifies
- DIRECT USDA APPLICANTS (MDOs): Must be a nonprofit organization with at least 2 years of experience providing technical assistance to microenterprises in rural areas
- DIRECT USDA APPLICANTS (MDOs): Must demonstrate ability to provide loans and technical assistance to rural microentrepreneurs
- DIRECT USDA APPLICANTS (MDOs): Must serve USDA-defined rural areas; some states require the MDO itself to be headquartered in a rural area
- INDIRECT RECIPIENTS (Microbusinesses): Must be a rural microbusiness with 10 or fewer full-time equivalent employees
- INDIRECT RECIPIENTS (Microbusinesses): Must be located in a rural area (USDA definition: outside urbanized areas of 50,000+)
- INDIRECT RECIPIENTS (Microbusinesses): Must demonstrate inability to access conventional credit at reasonable rates
- INDIRECT RECIPIENTS (Microbusinesses): Must participate in the MDO's technical assistance program as a condition of receiving a loan
- MDOs receive both loan capital (to relend) and grant funds (for technical assistance delivery); individual businesses receive loans + mentoring from MDO, not direct USDA grants
Hard requirements
- Rural location required
What it covers
Eligible expenses
- Working capital for day-to-day business operations (inventory, supplies, payroll)
- Equipment purchases for the microbusiness
- Business expansion costs
- Technical assistance and training fees (covered by grant component, not loan)
- Marketing and advertising expenses
- Professional services (accounting, legal) directly related to business operations
- Micro-inventory purchases for product-based businesses
Ineligible expenses
- Real estate purchase or construction (RMAP is not a real estate lending program)
- Speculative investments
- Debt refinancing of existing loans
- Agricultural production costs (farming operations have separate USDA programs)
- Purchases from related parties at above-market prices
- Costs not directly related to the rural microbusiness operations
How to apply
-
1
Find a participating MDO in your state
Individual microbusinesses do NOT apply to USDA directly. Contact your state's USDA Rural Development office (rd.usda.gov/contact-us/state-offices) to obtain the current list of RMAP-certified MDOs operating in your area. MDOs include CDFIs, community development corporations, and rural nonprofits. This step is the key gateway — availability varies by state.
~2 hrs
-
2
Apply to the local MDO
Each MDO has its own application process, underwriting criteria, and loan terms. Typically you'll need a simple business plan or executive summary, 2 years of personal and business tax returns, bank statements, and a description of how you'll use the funds. MDOs are more flexible than banks — they're designed to work with borrowers who lack traditional credit history.
~10 hrs
-
3
Complete required technical assistance
RMAP loans require participation in the MDO's technical assistance program — typically 4–12 hours of small business training, mentoring, or coaching before or concurrent with loan approval. Topics vary: bookkeeping, marketing, business planning, QuickBooks. This is a legal condition of RMAP funding, not optional.
~8 hrs
-
4
Close loan and begin repayment
MDOs disburse loans directly. Interest rates are below-market (often 4–8%). Repayment terms vary by MDO — typically 12–84 months depending on loan purpose. MDOs report outcome data to USDA annually.
~2 hrs
Most applicants don't realize this is an indirect program — you get a loan from a nonprofit lender, not a grant from USDA. The key is finding an active MDO near you; some states have none. Call your USDA state office first.
Deadline & timing
This is an indirect program — the USDA NOFO is for MDOs (nonprofits), not individual businesses. Microbusiness owners should contact their local USDA Rural Development office to find a participating MDO in their state, then apply to that MDO directly. MDOs set their own intake schedules. The MDO-level NOFO typically opens January–March with spring deadlines. As of May 2026, the FY 2025 MDO NOFO status could not be confirmed; program may be between MDO-funding cycles.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.