Food Supply Chain Guaranteed Loan Program Will Provide Nearly $1 Billion
On December 9, 2021, the U.S. Department of Agriculture (USDA) announced that it’s making an additional $100 million available under the new Food Supply Chain Guaranteed Loan Program. This $100 million commitment comes in addition to the $500 million commitment made by USDA in July 2021. In total, the Food Supply Chain Guaranteed Loan Program will make nearly $1 billion in loan guarantees available. It is stated by USDA that these loan guarantees will be used to back private investment in food processing and food supply infrastructure.
Food Supply Chain Guaranteed Loan Program to Provide Help for Essential Processing & Supply Chain Infrastructure
The investments will be dedicated to aiding essential processing and supply chain infrastructure. In building stronger infrastructure and supply chains, the goal is for farmers to have more opportunities for fairer prices, for the public to gain greater access to healthy food, and for the supply chain to dminish bottlenecks.
In the December 9, 2021 release, U.S. Department of Agriculture Secretary, Tom Vilsack issued the following quote, “The pandemic exposed vulnerabilities and created extreme disruptions in America’s food supply chain. The reduction in meat processing capacity is just one example of the supply chain bottlenecks that affect small and midsize farmers, under the leadership of President Biden and Vice President Harris, USDA is investing in ways to improve America’s food supply chain. The funding we’re announcing today will leverage approximately a billion dollars in public and private-sector investments that will significantly expand meat and poultry processing capacity and finance critical food supply chain infrastructure.”
Funding Eligibility
USDA will partner with lenders to guarantee loans of up to $40 million for eligible entities to expand meat and poultry processing capacity and strengthen food supply chain infrastructure. Eligible entities, according to USDA, ‘include cooperatives, corporations, for profits, nonprofits, Tribal communities, public bodies, and people in rural and urban areas.’
More specifically, the borrower information page at https://www.rd.usda.gov/food-supply-chain-guaranteed-loans states that eligibility is focused on those directly engaged in the middle of the food supply chain. USDA specifies that as “the aggregation, processing, manufacturing, storing, transporting, wholesaling, or distribution of food.”
Borrowers are encouraged to work directly with their preferred lender to determine eligibility. If you find that your preferred lender isn’t yet involved with the Food Supply Chain Guaranteed Loan Program, USDA advises you to encourage them to participate or to contact your state office for assistance in selecting a participating lender. The list of state offices can be found here: https://www.rd.usda.gov/about-rd/state-offices
Loans will be administered by USDA Rural Development and as stated in the 12/09/21 release, funds may be used to:
- start-up or expand food supply chain activities such as aggregating, processing, manufacturing, storing, transporting, wholesaling or distributing food.
- address supply chain bottlenecks.
- increase capacity and help create a more resilient, diverse and secure U.S. food supply chain.
Learn more about the Loan Program and how to apply for funds through the USDA, linked here.
DC Norris North America is ready to help North American food producers mobilize for new equipment and infrastructure with these dedicated funds.
