The Rural Business Investment Program (RBIP), administered by USDA Rural Development, offers licenses to newly established Rural Business Investment Companies (RBICs). These licenses allow certified developmental capital funds to invest equity capital in rural businesses, aiming to address the funding gap for business development in rural areas. The RBIP is targeted at for-profit organizations or subsidiaries that specialize in venture capital or community development financing, with the goal of fostering growth and economic vitality in rural communities through targeted investments.

To qualify for an RBIC license, applicants must form new for-profit entities or subsidiaries, demonstrate experience in venture capital or community development financing, and raise at least $10 million in private equity capital. Eligible organizations may be structured as limited partnerships, limited liability companies, or corporations. While there are no geographic restrictions on where applicants can be based, the RBIC’s investments are primarily focused on designated rural areas.

Investment requirements under the RBIP include directing a minimum of 75% of funds to businesses located in rural areas with populations of 50,000 or less. At least 50% of these funds must be invested in smaller enterprises, with a cap of 10% on investments in urban areas. These investments are designed to encourage sustainable development in rural communities, providing critical growth capital to smaller enterprises that are often underserved by traditional capital sources.

The application process for RBIC licenses is open year-round, allowing for flexibility in timing for prospective applicants. Interested parties should consult the Code of Federal Regulations (7 CFR Part 4290) and the USDA’s guidelines for specific regulatory requirements. For inquiries, applicants are encouraged to contact USDA Rural Development directly at RBIP@usda.gov.

The program, authorized by the Food, Conservation, and Energy Act of 2008, supports USDA Rural Development’s commitment to enhancing access to capital in rural communities, recognizing its role as a foundational resource for business sustainability and economic growth in these areas.