Rural small business loan limit raised to $75,000 under updated federal program

What does this do?

HR 4935 updates the Rural Microentrepreneur Assistance Program by raising the maximum loan size from $50,000 to $75,000 and allowing the program to cover the full loan amount instead of only 75 percent. The bill extends the program's funding authorization from 2026 through 2030, replacing the previous window of 2019 through 2023. A new rule limits construction, demolition, and real estate improvement costs to no more than half of any loan.

Who does it affect?

Small business owners in rural communities with ten or fewer employees are the primary people affected, particularly those who cannot access traditional bank loans. Nonprofit organizations that act as middlemen lenders are also affected, as they receive federal grant money to manage these loans and absorb potential losses.

Why does it matter?

Without the funding extension, the program would have no authorized funding going forward, effectively ending access to these loans for rural small businesses. The construction cost cap redirects the program toward general business needs rather than large real estate or building projects.

What does it cost, and who pays?

• Grants go to nonprofit lenders
• Covers loans up to $75,000
• Authorized through 2030