Small businesses are the backbone of our Main Streets. 99% of all businesses in Iowa are small businesses, employing nearly half of all working Iowans. According to a recent survey, inflation and interest rates have made it difficult for more than half of small businesses to access the capital they need to kickstart their businesses. This gets increasingly difficult for small businesses in rural areas.
The USDA Rural Microentrepreneur Assistance Program provides loans or grants to small businesses to help with startup and growth. The program also provides training and technical assistance to borrowers and microentrepreneurs. Currently, loans are limited to 75% of the project cost up to $50,000. The loans are limited to use for certain start up, expansion, new equipment purchases, or facility improvement costs.
My bipartisan Rural Microentrepreneur Assistance Act will eliminate barriers to increase support for small businesses receiving loans through this program by:
- Increasing loan support to match inflation
- Empowering small businesses to help rural communities grow
- Removing red tape that slows down rural start ups
In rural America, we can’t wait for jobs to come to us, we must support those who are willing to create them. This legislation is a strong step towards connecting our rural job creators with opportunities to grow, expand, and reach their full potential.
Read the bill text here: