Loans of less than $50,000 are now available to small rural businesses in 49 counties, including Bryan, through the USDA Rural Development’s Rural Microentrepreneur Assistance Program.
Donnie Thomas, acting state director of USDA Rural Development, recently presented a ceremonial big check to members of the Small Business Assistance Corporation (SBAC) for the Rural Microentrepreneur Assistance Program (RMAP). Through RMAP, SBAC will provide micro-loans – loans less than $50,000 – to small rural businesses after receiving a $400,000 loan and a $100,000 grant.
“This should be another avenue of support for rural entrepreneurs in need of loans,” Thomas said. “We realize that many small businesses are running into problems accessing capital. We hope this program will help.”
SBAC in Savannah will provide service to Bryan County, as well as Bulloch, Effingham, Long, McIntosh and several others.
As businesses pay back loans, the funds are then available to re-lend to another business, creating a renewable loan resource.
Loans through this program can be used for working capital; purchase of furniture, fixtures, supplies, inventory or equipment; debt refinancing; business acquisitions; and purchase or lease of real estate, with qualifying conditions.
Loan funds cannot be used for a variety of purposes, including but not limited to construction costs or assistance that will cause conflict of interest issues.
Businesses interested in applying for loans can contact SBAC for assistance. Interest rates on the SBAC loans will be 8 percent, which is subject to change.
For more information, contact Debra Simmons at dsimmos@sbacsav.com or visit www.rurdev.usda.gov/ga.