Rural Business Development Grant: Opportunities for Markets and Producers

Equipment, training, and facilities can improve the experience of farmers and customers alike. The USDA’s Rural Business Development Grant (RBDG) offers funds for projects that will create, increase, or support small businesses in rural areas. While the focus of this grant is squarely on business, the grant is awarded to public entities/governments, tribes, or non-profit organizations. With the help of these awardees, small businesses can benefit from a variety of projects from land purchases, facility construction/renovation, or training. 

Applications are scored using information about the area and project such as, leveraging, demographics, population, unemployment, median household income (MHI), and experience to name a few. For more information about the scoring of applications reference last year’s information at rd.usda.gov. Below are some projects the grant has recently funded.

Chisholm Trail Trading Post, Comanche OK

  With this grant, the city of Comanche opened the Chisholm Trail Trading Post in March 2021. The facility was once the Comanche Motel and now serves as a farmers/flea market. Since opening, the trading post has seen good business with 3,000-4,000 people attending the market in the cooler spring and fall months. The City Manager for Comanche, Chuck Ralls, says that the process for applying for the grant was “no hassle” with the help from the good staff at USDA. The whole town has seen an increase in revenue with the opening. The Chisholm Trail Trading Post prioritizes local producers giving them an advantage over wholesale/resale vendors.

 The City of Thomas and South Canadian Meats

The city of Thomas purchased meat processing and packing equipment that it leases to South Canadian Meats, a new processor in their town. Rick Payne, one of the owners of South Canadian Meats, credits the grant and support from the city as what “got us rolling”.  They now process and sell their own cuts but also process meat for other area producers. The equipment and support from the city has allowed Payne and his partners to donate food for community events. For Rick the venture has turned out to be, “something that everyone in the community can enjoy.” 

Collective Roots, Laverne OK

Producers and food businesses in Laverne, OK have access to a commercial kitchen and store space thanks to a grant secured by Harper County Development Authority. Helena McLaurine, with the Harper County Development Authority, says of the application process, it is lengthy but if groups “commit to the process… it is a very positive experience.” The grant secured the funds needed to purchase a local restaurant that had been vacant. The space can now be leased by local producers and has even hosted pop up restaurants. McLaurine is “excited about what this means for our community.” 

Next Steps    

The possibilities are expansive, with unique opportunities to incorporate farmers and producers into the small business fabric of rural communities. Information on current grant funding is usually published in November or December, with applications due roughly 60 days from publication. Details and funding vary from year to year but application forms can help begin the application before the current year’s information is published. Amy Cowley serves as the Business and Cooperative Programs Grant Specialist for the USDA in Oklahoma. She can answer questions and help navigate the application process. Amy can be reached by email: amy.cowley@usda.gov or by phone: (405) 742-1039.