Legal Definitions - RBS

The RBS, which stands for the Rural Business-Cooperative Service, is an agency of the United States Department of Agriculture. Its primary role is to foster economic development and improve the quality of life in rural communities across the nation. The RBS achieves this by providing various forms of financial assistance, such as loans, grants, and loan guarantees, as well as technical support and guidance to rural businesses, cooperatives, and community organizations. Its programs aim to create jobs, enhance infrastructure, and support the growth of a diverse rural economy.

• Example 1: Expanding a Rural Manufacturing Business
  A small furniture manufacturing company located in a rural county in Oregon wants to purchase new equipment to increase its production capacity and hire more local workers. The company applies for a loan guarantee through one of the RBS programs, which helps them secure financing from a private lender that might otherwise be hesitant to lend to a business in a less populated area.

  Explanation: This illustrates the RBS's role in supporting existing rural businesses with financial tools (like loan guarantees) to expand operations, create jobs, and stimulate the local economy, aligning directly with its mission.

• Example 2: Forming an Agricultural Cooperative
  A group of dairy farmers in rural Vermont decides to form a cooperative to collectively process and market their milk products, aiming to achieve better prices and reach a wider market. They seek assistance from the RBS, which provides them with technical guidance on cooperative formation and governance, and potentially a grant to help with initial startup costs for a processing facility.

  Explanation: This demonstrates the RBS's focus on supporting cooperatives, particularly in agriculture, by offering both expert advice and financial aid to help rural producers work together, increase their economic viability, and access new markets.

• Example 3: Developing Rural Broadband Infrastructure
  A remote community in rural Kansas lacks reliable high-speed internet access, hindering local businesses and educational opportunities. The local government, in partnership with a private internet service provider, applies for a grant from the RBS to fund the installation of new fiber optic cables throughout the area.

  Explanation: This example highlights the RBS's involvement in funding critical rural infrastructure projects, such as broadband development. By providing grants, the agency helps bridge the digital divide, enabling economic growth and improving the quality of life for residents in underserved rural regions.