Federal funding options for rural businesses

Set expectations first

The SBA states that it does not provide grants for starting and expanding a business, and that is true of most federal grants. Federal programs that do serve rural businesses fund a defined purpose, often share the cost with you, and come with reporting rules. Knowing that up front saves time.

USDA Rural Development

USDA Rural Development runs most of the federal programs aimed at rural communities. Many of them fund local governments, nonprofits and cooperatives that serve rural areas rather than individual businesses, so read the eligibility rules of each program carefully.

One program that does fund businesses directly is the Rural Energy for America Program (REAP), which supports renewable energy systems and energy efficiency improvements. USDA lists two types of eligible applicants:

• Agricultural producers with at least 50 percent of gross income from agricultural operations
• Rural small businesses that meet SBA size standards

REAP combines grants with loan guarantees, and the grant share of project costs has changed between funding years. Confirm the current terms in the notice or with your state Rural Development office before you plan your budget.

Research and development

If your rural business is developing a new product or technology, the SBIR and STTR programs are open to small businesses anywhere in the country, and USDA is one of the participating agencies. See our SBIR and STTR page.

Registrations to start early

Most organizations need these before they can apply through Grants.gov. Registration is a step you take with each government system directly; GovGrantsUSA cannot do it for you.

1. SAM.gov entity registration and UEI. Register your organization in SAM.gov to receive a Unique Entity ID. A UEI on its own, without a full registration, is not enough to apply directly for federal awards. Grants.gov notes activation can take up to 10 business days, and registration must be renewed every year.
2. Login.gov. You sign in to SAM.gov with a Login.gov account.
3. Grants.gov account and roles. Your organization's E-Business Point of Contact (named in SAM.gov) creates a Grants.gov organization profile with your UEI and assigns roles such as Authorized Organization Representative, the person allowed to submit.

Use the free Federal Grant Readiness Checklist to track what you have and what is missing.

How GovGrantsUSA helps

• Choose Rural Business as your organization type, add your state and NAICS codes, and matching scores open opportunities for you every day.
• Set a grant alert for USDA or for keywords such as renewable energy, so new postings reach you.
• Use the budget tools in your workspace to show your cost share clearly.

Browse open opportunities

• Open federal grants for Small Businesses

Free planning tools

• Federal Grant Readiness Checklist : Track the registrations every federal applicant needs and print a list of what is still missing.
• Grant Budget & Indirect Cost Calculator : Build a draft budget, apply a negotiated or de minimis indirect rate, and export it in SF-424A categories.
• Grant Scam Checker : Got a call or message about a "grant"? Check it against the FTC warning signs in under a minute.
• Application Timeline Planner : Work backwards from a deadline and download every milestone to your calendar.

Frequently Asked Questions

Other organization types