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Grants · Rural Business Development Grants

Rural Business Development Grants

RBDG is the programme people most often misread. The applicant is never the business being helped: it is a public body, a tribe or a non-profit that uses the grant to develop small and emerging businesses in a rural area. Understanding that distinction, and the split between opportunity and enterprise projects, decides whether an application is eligible at all.

Who can apply

7 CFR 4280.416 limits eligible applicants to a Public Body or Government Entity, an Indian Tribe, or a non-profit entity. A private business benefits from the project but does not apply for the grant.

Two project types (7 CFR 4280.417). Business opportunity projects identify and analyse business opportunities — including feasibility and business plan studies — provide technical assistance, establish business support centres, conduct economic development planning, and run leadership or training centres. Business enterprise projects finance or develop small and emerging businesses directly: land and building development, construction and modernisation, working capital, revolving loan funds, distance learning networks, technical assistance including feasibility studies and business plans, and improving rural passenger transportation.

Unless a Notice of Solicitation of Applications says otherwise, the Agency sets aside 10 percent of the appropriation for business opportunity type grants, and may reallocate it to enterprise grants if demand is insufficient.

Application windows change every year. Each of these programmes sets its amounts, deadlines and priority points through an annual notice — a Federal Register notice, a Notice of Solicitation of Applications, or a notification posted on the programme website. Confirm the current window with USDA Rural Development or your State office before relying on any date.

What the application must show

Grants may be made only where the application demonstrates a need for the project, includes a basis for determining success or failure, and sets out how that will be assessed (7 CFR 4280.417(c)). The written narrative required by 7 CFR 4280.427 has to explain:

  • Why the project is needed, and what benefits it will produce
  • How it meets the eligible purposes of the programme
  • How it coordinates with other economic development activities
  • The business to be assisted, where that is applicable, and the economic development to be accomplished
  • How the project will create, increase or support jobs, and how many jobs are projected over the next three years

Business opportunity projects additionally have to be consistent with local and area-wide strategic plans for economic development.

How USDA scores it

7 CFR 4280.435 lists the scoring criteria. In summary:

RBDG scoring criteria, 7 CFR 4280.435
LeveragingThe proportion of total funding the grant represents, and whether it funds a critical element of a larger programme.
Community statusTrauma from a natural disaster, economic distress from job losses, long-term poverty, and population decline.
Population and incomeThe size of the community and the median household income of the project area.
UnemploymentThe unemployment rate in the project area.
Applicant experienceExperience in the type of activity proposed.
JobsJobs created or supported relative to the size of the grant request.
Size of requestScored in tiers — less than $100,000, $100,000 to $200,000, and more than $200,000 but not more than $500,000 — with smaller requests favoured.
Administrative costsPoints for not requesting administrative or indirect costs.
Discretionary pointsUp to 50, assigned by the State Director or the Administrator.

The scoring rewards precision. “Jobs created or supported” is scored against the grant request, so an unsupported jobs number is not merely optimistic — it is the number the award is measured against afterwards.

Scope of practice. Wert-Berater, Inc. does not arrange, broker or place debt or equity capital, does not write applications on an applicant’s behalf as a packager, and is not paid on whether an award is made. The firm prepares the independent feasibility, market and business-plan analysis that grant programmes require, for a fixed fee.

Where independent analysis fits

Both project types can fund feasibility studies and business plans as the activity itself — an economic development authority commissioning a study for a prospective employer, for instance. Where that is the project, the quality of the study is the deliverable, and the scoring criteria on need, jobs and coordination are exactly what a well-built market and economic analysis answers.

We prepare that work: see grant and incentive feasibility studies and independent market reports.

Last reviewed September 2026. Criteria are quoted from the current text of 7 CFR part 4280 subpart E.

Frequently asked questions

Can my business apply for an RBDG?
No. Eligible applicants are public bodies and government entities, Indian tribes, and non-profit entities. A business can be assisted by an RBDG project without being the applicant.
What is the difference between opportunity and enterprise grants?
Opportunity grants fund planning, analysis, technical assistance and capacity building for rural economic development. Enterprise grants finance or develop small and emerging businesses more directly, including buildings, equipment, working capital and revolving loan funds.
Is there a maximum RBDG award?
The rule does not state a single ceiling; the annual notice governs. The scoring criteria favour smaller requests, tiering them at under $100,000, $100,000 to $200,000, and more than $200,000 but not more than $500,000.
Does an RBDG application need a feasibility study?
Not as a named requirement. But the application must demonstrate need, a basis for judging success or failure, and projected jobs — and a study or market analysis is the usual way to evidence all three.
Building an RBDG application?

Independent market, feasibility and economic impact analysis for public bodies and non-profits. Fixed fee quoted in one business day.

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Legal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.

Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.

All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.

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