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Running a business in a small town or farming community comes with a different kind of pride and a different set of challenges. Rural businesses often serve as the heart of their communities, providing jobs, services, and local stability. But when it comes to funding, the path forward isn’t always clear.
About 15 percent of small businesses in the U.S. are located in rural areas, according to the Federal Reserve’s Small Business Survey. For funding purposes, the USDA defines rural areas as those outside cities or towns with fewer than 50,000 residents, though other organizations may use different benchmarks. Regardless of how “rural” is defined, business owners in these communities often face similar financial obstacles when trying to grow.
Funding challenges for rural businesses
A limited number of local banks and community lenders means fewer financing options close to home. Many national lenders are less familiar with rural markets, which can make qualification tougher or require more collateral.
In 2024, 40% of rural small businesses reported receiving either partial or none of the funding they applied for. That’s nearly twice the rate of urban businesses.
Another common barrier is that many federal and state programs don’t provide funding directly to small business owners. Instead, they channel funds through local nonprofits, utilities, or economic development groups. That extra layer can make rural funding programs harder to discover or access and often more competitive.
Still, there are opportunities out there. If you know where to look, you can find grants and low-interest loans designed specifically to support rural entrepreneurs like you. We’ve compiled a list of opportunities to get you started.
Rural business development grants
A grant is money you don’t have to pay back. It’s usually awarded based on eligibility criteria such as where your business is located, what industry you’re in, or how your business serves your community. If you qualify, a grant can give you a financial boost without adding debt.
Below are some of the best funding options to explore if your business is based in a rural area.
Grants.gov
Grantor: Multiple agencies
Amount: Varies
This is the central database for more than 1,000 federal grant opportunities. You can search by keyword, agency, or eligibility to find programs that fit your business — try the keyword “rural” to narrow the results.
Cornerstone Grant
Grantor: Square Financial Services
Amount: $10,000 grants (plus business support resources)
This program supports underrepresented small business owners, including rural entrepreneurs. Winners also receive access to mentorship, educational resources, and Square’s suite of business tools.
Amber Grant for Women
Grantor: WomensNet
Amount: $10,000 monthly, $25,000 annual grant
This long-running grant program is open to women-owned small businesses, including those in rural areas. If your business is woman-led, you can also explore other grants for women-owned businesses for additional opportunities.
USDA grants for rural businesses
The United States Department of Agriculture (USDA) offers several funding programs designed to strengthen businesses in rural areas. However, most USDA grants are not awarded directly to rural for-profit businesses. Instead, they are made available to public bodies, tribal governments, cooperatives, and nonprofit organizations that serve rural communities.
If you’re interested in USDA programs, your best bet is to contact your local USDA Rural Development office. They can point you to the organizations in your region that administer the funds and guide you on how to access available opportunities.
USDA Rural Business Development Grants (RBDG)
Grantor: U.S. Department of Agriculture (USDA)
Amount: Typically $10,000–$500,000
This program supports small rural businesses with fewer than 50 employees and less than $1 million in annual revenue. Funds may be used for technical assistance, training, or infrastructure development.
Rural Innovation Stronger Economy (RISE) Grants
Grantor: USDA
Amount: Up to $2 million over four years
RISE grants back high-impact projects that create or support business incubators, training facilities, and innovation hubs in rural regions.
Rural Microentrepreneur Assistance Program (RMAP) Grants
Grantor: USDA
Amount: Varies
RMAP grants go to micro-enterprise development organizations that then lend funds and provide training to small rural entrepreneurs with 10 or fewer employees.
Value-Added Producer Grants (VAPG)
Grantor: USDA Rural Development
Amount: Up to $250,000
This program helps agricultural producers create new income streams by developing value-added products, such as turning milk into cheese or fruit into jam.
Farm Grants via State Agencies
Grantor: State-level agencies
Amount: Varies by program and state
The National Sustainable Agriculture Coalition maintains a list of farm bill programs and grants available to rural farmers, most of which can be applied for through Grants.gov.
Rural business loans
A loan is money you borrow and pay back over time, usually with interest or a fixed fee. Loans can often be approved faster than grants and can be used for almost any business expense — from equipment and payroll to working capital. Rural-focused loan programs may offer lower interest rates or more flexible repayment terms, making it easier for you to qualify and grow your business.
SBA 7(a) Loans
Lender: SBA-approved banks and credit unions
Amount: Up to $5 million
The U.S. Small Business Administration’s (SBA) flagship 7(a) loan program provides government-backed financing that can be used for working capital, real estate, or equipment purchases. Because the SBA guarantees a portion of each loan, lenders are more willing to approve applications from small or rural businesses that might otherwise struggle to get funding
SBA Microloans
Lender: Nonprofit intermediaries through the SBA
Amount: Up to $50,000
These short-term loans are designed for startups and small businesses that may not qualify for traditional bank financing, including those in rural areas.
Square Loans
Lender: Square
Amount: Based on sales history (typically a few hundred to $250,000+)
Square Loans offer fast, fixed-fee financing that’s repaid automatically through your daily sales. There’s no lengthy paperwork, making it an accessible option for businesses already using Square.
USDA Business & Industry Loan Guarantee Program (B&I Loans)
Lender: USDA-approved lenders
Amount: Up to $25 million
This program provides loan guarantees to lenders, allowing them to extend more affordable financing to rural businesses.
Rural Microentrepreneur Assistance Program (RMAP) Loans
Lender: Intermediaries funded by USDA
Amount: Up to $50,000 per borrower
These loans are designed specifically for micro-businesses in rural areas, offering favorable terms and local support.
Farm Service Agency (FSA) Direct Farm Operating Loans
Lender: USDA Farm Service Agency
Amount: Up to $400,000
The program offers low-interest loans that help farmers and producers cover operating expenses, purchase equipment, or buy land.
Farm Credit System Loans
Lender: Farm Credit System network
Amount: Varies by lender
The Farm Credit System is a cooperative network of agricultural lenders that offers flexible financing tailored to rural and farm-based businesses.
Finding the right support for your rural business
Rural business owners play a vital role in their local economies but often face challenges when it comes to securing capital. The good news is that a variety of grants and loans exist to help you grow whether you’re expanding a farm, launching a food business, or upgrading your operations.
If you’re a woman or minority entrepreneur, you can explore additional funding in our guides to small business grants for women-owned businesses and small business grants for minority-owned businesses.
And if you’re looking for simple, transparent financing that scales with your business, Square Loans and the Square Cornerstone Grant Program make it easier to get the funding you need, no matter where you’re located.
