On December 9, 2021, the U.S. Department of Agriculture announced they are deploying $100 million under the new Food Supply Chain Guaranteed Loan Program to make available almost $1 billion in loan guarantees. These loan guarantees will back private investment in processing and food supply infrastructure, and the ultimate goal is to strengthen the food supply chain.
USDA is making the funding available through the American Rescue Plan Act. These efforts in particular are part of USDA’s Build Back Better Initiative, a comprehensive plan to invest $4 billion to strengthen the resiliency of America’s food supply chain while promoting competition.
These investments have the goal of helping processing and supply chain infrastructure. The aim is to deliver more opportunities and fairer prices for farmers, give people more access to healthier foods, and help eliminate food supply chain bottlenecks.
Through the Food Supply Chain Guaranteed Loan Program, USDA will partner with lenders to guarantee loans of up to $40 million to help eligible entities expand meat and poultry processing capacity, plus finance other food supply chain infrastructure.
USDA Rural Development (RD) will administer the loans. The loans may be used to:
- start 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 and secure food supply chain.
USDA is accepting electronic applications from lenders through the Food Supply Chain Online Application System until funds are expended.
To access the online application system, lenders can submit a request to rdfoodsupplychainloans@usda.gov.
For more information, visit www.rd.usda.gov/foodsupplychainloans.
