RBS Programs
(Rural Business Service)
Department of AgricultureRural small businesses; entrepreneurs in communities with populations under 50,000
What This Program Does
The Rural Business Service (RBS) programs provide grants, loans, and technical assistance to help small businesses and entrepreneurs in rural communities with populations under 50,000. These programs support business development, job creation, and economic growth in areas that often have limited access to private capital. Various RBS programs have operated for decades, with some dating back to the 1990s and others built on earlier rural development efforts.
Who Would Be Affected
Rural small business owners and entrepreneurs in towns and communities with fewer than 50,000 residents would lose access to federal business development support. This affects thousands of businesses across rural America that rely on these programs for startup funding, expansion capital, and technical guidance. Communities with limited access to banks and private investors would be disproportionately impacted, as rural areas often face gaps in available commercial lending.
What This Cut Would Mean
The proposed $0.1 billion cut would completely eliminate RBS programs, ending federal grants, guaranteed loans, and technical assistance for rural businesses. The administration argues that private-sector channels can fill this role, but independent analysts and rural development experts have noted that private lenders often avoid rural markets due to smaller deal sizes and higher perceived risk, suggesting these programs address gaps the private sector has historically not filled. Without these programs, rural entrepreneurs may face greater difficulty accessing the capital needed to start or grow businesses, potentially slowing economic development in already underserved communities.
Administration's Stated Rationale
“Eliminates duplicative rural business programs, redirecting support through private-sector channels.”