USDA Rural Business Development Grant program discussed
On June 3, local U.S. Department of Agriculture (USDA) Rural Development staff hosted a webinar on the Rural Business Development Grant (RBDG) program in Wyoming.
During the webinar, Business Specialists Lynelle Barber and Cynthia Detloff provided an overview of the RBDG program, including background information, eligibility and important deadlines for 2026.
Background and eligibility
USDA Rural Development is charged with assisting in the startup, development and expansion of small and emerging businesses in rural communities and supports this mission through the RBDG program.
According to USDA, RBDGs support targeted technical assistance, training and other activities which promote the development and expansion of small and emerging private businesses in rural areas.
“The RBDG Grant is a one-year grant, and grant activities must occur during the grant period,” Barber emphasized. “Activities completed before or after the grant period cannot be reimbursed.”
Eligible applicants include rural cooperatives; state government agencies, towns and communities; nonprofit corporations; institutions of higher learning and federally recognized Tribes, according to USDA, and eligible businesses must have fewer than 50 employees and less than $1 million in gross annual revenues.
USDA further notes individuals and for-profit businesses are not eligible to apply for RBDGs.
Grant types
According to USDA, RBDG funding is separated into two categories – enterprise and opportunity grants.
Opportunity grants are limited to up to 10 percent of the total RBDG annual funding, and enterprise type grants must be used on projects to benefit small and emerging businesses in rural areas as specified in the grant application.
“Opportunity projects are for communitywide projects and are global in nature, whereas enterprise projects are to provide technical assistance to small and emerging businesses and are directed to a specific community or business need,” Barber explained.
“Opportunity projects are for the planning and training projects to develop and grow a rural area,” she continued. “The project must be consistent with any local and area wide strategic plans for community or economic development, coordinated with other economic development activities in the project area and consistent with any rural development state strategic plan.”
Opportunity grant funds are made to analyze rural business opportunities, identify and provide training opportunities to rural entrepreneurs, conduct leadership development, establish training or technology centers and conduct technical assistance or area-wide planning activities, according to USDA.
“Enterprise projects are for small and emerging businesses and focus on developing or financing existing small businesses,” Barber added. “Opportunity projects are for rural areas, and enterprise grants are for small and emerging businesses.”
USDA explains enterprise grant funds may be used to acquire or develop land, buildings, plants and equipment; access streets and roads, parking areas, utility extensions, necessary water supply and waste disposal facilities; provide technical assistance; establish revolving loan funds and to create, expand or operate rural distance learning programs which provide educational or job training instruction related to potential employment or job advancement to adult students.
Grants generally range from $10,000 to $500,000, and there is no cost-sharing requirement.
Important deadlines
The 2026 RBDG has two closing dates – June 15 for Strategic Economic and Community Development (SECD) applications, and June 30 for all other applications.
To apply for the RBDG, applicants must have an active System for Award Management (SAM) account, which can be registered for at sam.gov.
For more information or to view a full checklist of the necessary application requirements, interested parties may visit the USDA Rural Development website and navigate to the RBDG “Application Toolkit” section.
In closing, Detloff reiterated the RBDG is a reimbursement grant and offered some closing reminders.
“Do not start your project prior to being approved,” Detloff said. “This is a reimbursement grant, so awardees must have proof of payment will only be reimbursed for eligible activities detailed in their original work plan that was approved.”
Grace Skavdahl is the editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
