$500M Rural Capital Advance Launched to support business expansion, start-ups, and small business retention.

In response to the recommendations heard at its Capitalizing on Rural America symposium, the Home Loan Bank is putting money where its mouth is.

The bank recently committed $100 million a year for five years to support innovative rural economic development initiatives. A new program, entitled Rural Capital Advance, will support business expansion, start-ups, and small business retention. The goal is to increase flexibility and creativity in how rural areas approach economic growth, encouraging communities to focus on innovation and entrepreneurship rather than chasing one big company or potential employer.

Of the first $100 million to be allocated, $50 million will be reserved until Dec. 31 for five states (Iowa, Minnesota, Missouri, North Dakota, and South Dakota), with each receiving $10 million. Any funds to those five states beyond the $10 million will be distributed on a first-come, first-serve basis.

For the Rural Capital Advance, "rural" is defined as a unit of general local government with a population of 25,000 or less; an unincorporated area outside a Metropolitan Statistical Area (MSA), or an unincorporated area within an MSA that qualifies for housing or economic development assistance by the U.S. Department of Agriculture.

More information is available at: http://www.fhlbdm.com/ci_cia_rca.htm

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