USDA Rural Economic Development Loan & Grant Program Provides Funding for Business Expansions & Startups

USDA Rural Economic Development Loan & Grant Program Provides Funding for Business Expansions & Startups Main Photo

13 Dec 2022


News

Rural Minnesota businesses can benefit from the USDA Rural Economic Development Loan & Grant (REDLG) program designed to create jobs through business expansions and start up activities. Businesses who qualify can receive loans at an interest rate that is either zero, or lower than the prevailing Prime interest rate. This makes it more affordable to get funding through the USDA REDLG loan program as gap financing intended to complement traditional bank financing.

Financing for Business Expansions & Startups in Minnesota 

The USDA Rural Economic Development Loan & Grant Program can provide up to 80% of a project’s cost, lending up to $2,000,000. Those looking for a grant alone can receive up to $360,000 with a local cooperative contributing a 20% match. 

The pass-through loans can be used for a variety of business expansion activities, including:

  • Construction
  • Land acquisition
  • Equipment purchase
  • Other uses that help to create jobs and improve the local economy

Grant funds can be used for a variety of community development projects, including:

  • Business incubators
  • Community development assistance to nonprofits and public bodies
  • Facilities and equipment to educate and train rural residents to help economic development
  • Facilities and equipment for medical care for rural residents
  • Technical assistance

USDA loans and grants can be ideal for Minnesota entrepreneurs looking for funding sources to make potential expansions possible. The USDA grants and loan programs have historically supported this type of funding. Learn more about the USDA grants and loans in Minnesota