Resources for small businesses in Rural Georgia.

Whether you define rural by the size of a community or the lifestyle, many of Georgia’s communities fit into some version of rural.

According to Georgia’s Rural Center, rural is a designation for counties with populations less than 50,000. Out of the 159 counties in Georgia, this accounts for 120 designated a rural or approximately 75%. Many of these rural zones being in the southern half of the state.

For those who choose to live, learn or build businesses in rural areas, there is an appreciation for the quality of life and advantages that may not be available in metro counterparts. However, smaller populations can have a multiplying effect on the greatest challenges any small business owner faces – access to customers, capital, and talent.

In this three-part series, our team is sharing solutions for rural Georgia businesses to reduce those barriers and support their growth – no matter their zip code.

Part Two: Funding Outside of the Box

Access to capital or funding commonly top the list when small business owners are asked about their barriers to growth.

According to SCORE’s The Megaphone of Main Street report, among all small businesses, two-thirds need outside financing while three-quarters have trouble accessing it. For those in rural areas, the scarcity of local bank branches can be an added barrier.

Beyond the funding resources across Georgia, rural communities may consider looking to their friends, peers and neighbors to raise money or even federal programs that are focused on rural community success.

Funding with Friends

Lending Circles

For hundreds of years, the concept of lending circles has helped families, communities, or tribes access funds without interest or debt. Lending circles are a form of peer-to-peer lending where everyone contributes a sum, and later, can withdraw from the pool of funds.

In more recent years, these circles can be seen more formalized by local chambers or non-profit organizations whose aim is to help small business owners or residents. There are even digital applications that help manage the funds and schedule of withdrawals. Experian.com has authored a helpful article to help explain the concept and decide if lending circles are a good option for your business or community to start.

Multiple hands putting money into a piggy bank

Crowdfunding

How much would you be willing to pay today, to see that new business open next year? Crowdfunding asks consumers just that – to put forward a small amount of capital for a benefit later received. For example, if your dairy farm wants to start making cheese but needs new equipment, the farm could start a crowdfunding campaign to purchase that equipment. Small funders may be offered an invitation to the grand opening while larger funders receive one-year’s membership to the farm’s community supported agriculture program.

Today’s crowdfunding platforms can support projects across nearly every industry or community need- from technology, a film festival, community stoplights, to farmer’s market s– crowdfunding may be a viable solution to start something new or expand the businesses in rural regions. However, like any business initiative, it takes work to plan and launch a crowdfunding campaign. It’s advisable to read about each platforms requirements and policies as well as plan how to engage with customers and funders before, during, and after the campaign.

Rural Programs and Grants

Grants

At the federal level, several programs are available to help overcome funding gaps. Included in the Investing in America agenda, the Small Business Administration (SBA) has several programs that place an emphasis on under-resourced organizations, including those in rural areas – including grants.

Grants are often intended for non-profit or government agencies to expand programs, so entrepreneurs should check in with their local city or county agencies to see if they are participating in a rural-entrepreneurship grant program.

  • SBA Rural Energy for America Program – If you own or operate a rural small business or agricultural production facility than you may be eligible for a loan or grant to buy, build, and install energy efficiency improvements through REAP. Renewable Energy System Grants are available from $2,500 - $1 million. Energy Efficiency Grants are available from $1,500 - $500,000. Applicants must provide matching funds if applying for a grant only. Grants may be up to 50% of total eligible project costs (sba.gov).

  • SBA PRIME - The PRIME grant supports training, program development to increase access to capital This year’s $7 million PRIME grant awards will provide funding and support to organizations offering training, technical assistance, access to capital, and program development for disadvantaged microentrepreneurs and microenterprise development organizations – including those in rural areas and those that deliver technical assistance in various languages for entrepreneurs who are not proficient in English. This August, 28 grant awards were announced, including Operation HOPE, Inc in Georgia (sba.gov).

  • United State Department of Agriculture (USDA) Programs - In partnership with rural communities, funding from the USDA can help bring housing, business guarantees and more to rural regions. Small business owners in agriculture may qualify for loan programs like the beginning farms and ranchers, specialty cop block grants, or farmer’s market promotion program. Read about each program at USDA.gov.

If you decide to pursue grants, remember they take grit. From the application to the reporting, there is often a lot to consider before clicking submit. Earlier, we wrote some helpful tips on deciding if grants made sense for your organization and its goals.

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