SBA announces $8 million grant for rural micro-entrepreneurs

The Small Business Administration (SBA) will supply $8 million in funding to recipients of the 2023 Program for Investment in Micro-entrepreneurs (PRIME) grant.

SBA administrator Isabella Guzman announced the winners of the PRIME grant at the end of August, stating: “With these 32 community partners, the Biden-Harris Administration is helping to eliminate barriers and fill capital gaps for small businesses, especially in underserved communities, so they can access opportunities as we Invest in America.” Each recipient of the grant is a nonprofit that supports marginalized micro-entrepreneurs with training, capital and other assistance as they launch and scale new businesses. In a release, the SBA noted that individual grants to PRIME award recipients ranged from $100,000 to $400,000, 50% of which must be matched by other contributions. The administration will distribute this year’s funds by the end of September.

Micro-entrepreneurs typically operate with a narrower scope and smaller customer base than traditional small businesses. In fact, the companies launched by these individuals often provide products and services only to their local communities. However, depending on their area and industry, they can play an important role in addressing the specific needs of disadvantaged consumers overlooked by larger organizations. The small footprints of micro-enterprises also mean that many struggle to obtain funding and are held together by small teams of employees, which is why support from nonprofits and government programs are often crucial to their long-term success.

Micro-enterprises were heavily impacted by COVID-19 and remain disproportionally affected by ongoing economic headwinds such as high inflation and rising interest rates. The 2023 PRIME grants are the SBA’s answer to these pandemic-related struggles, and, in keeping with the Biden Administration’s directives, are primarily targeted to organizations helping disadvantaged business owners in rural parts of the country. The initiative was established in 1999 as part of the government’s Program for Investment in Micro-Entrepreneurs Act, passed to help individuals with low-income backgrounds launch new businesses.