Tuesday, November 18, 2008

Where is federal help for small, rural businesses?

News of a potential bailout of the U.S. auto industry, following bailout of some of Wall Street's biggest banks and insurance companies, leaves some wondering why no attention is being paid to small rural businesses. "In rural America, small businesses are the backbone of our economy and communities," writes Brian Depew in the Daily Yonder. "They create new jobs, develop new industries and create opportunity and vibrant rural communities."

There have been some efforts to help small rural businesses. The new Farm Bill created the Microentrepreneur Assistance Program, which gives grants to organizations for loans, training and technical assistance to rural businesses. But it is "woefully underfunded at just $4 million for the entire nation," writes Depew, the organizing and outreach director for the Center for Rural Affairs in Lyons, Neb. "That’s just 1/200,000 of the $700 billion being injected into big banks to solve the nation’s financial crisis."

Small-business development helped the economy recover from the 2002 recession and could give a boost to the current economy, Depew argues: "There is much potential in rural small business development, and there can be no wiser investment to provide opportunity and economic growth at a time of economic slowdown than assistance to businesses that create new jobs and innovation in our rural communities." (Read more)

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