U.S. Senators Pete Ricketts (R-NE) and Tina Smith (D-MN) have introduced the Rural Microentrepreneur Assistance Act, a bipartisan proposal aimed at extending and updating the Rural Microentrepreneur Assistance Program (RMAP). The program, managed by the U.S. Department of Agriculture, was originally established in the 2008 Farm Bill to support rural microenterprises through low-interest loans provided to eligible development organizations.
“Small businesses are at the heart of rural communities across Nebraska,” said Senator Ricketts. “Our bipartisan bill gives rural innovators more tools to expand their businesses and create jobs. By expanding opportunity, we can help grow Nebraska.”
“We should be making it a priority to help entrepreneurs turn their dream projects into reality,” said Senator Smith. “Too often, folks trying to start a business in rural communities can’t access the financing they need. This bipartisan legislation would help them get their businesses off the ground with federal loans and technical assistance. I’ll keep working to get it signed into law.”
“It’s essential that programs like RMAP evolve to serve the changing needs of rural entrepreneurs,” said Kalee Olson, Policy Manager for the Center for Rural Affairs. “The Center is grateful to Sens. Ricketts and Smith for introducing legislation to help rural small businesses succeed.”
The proposed legislation seeks several changes to RMAP, including raising the maximum loan amount available for rural microenterprises from $50,000 to $75,000 and increasing the allowable federal cost share from 75% to 100%. The bill also stipulates that no more than half of any demolition, construction, or related real estate improvement costs can be covered by a RMAP project loan. If passed, these updates would extend RMAP authorization through fiscal year 2030.
A similar version of this bill has been introduced in the House by Representatives Zach Nunn (R-IA-03) and John Mannion (D-NY-22).
