Food Supply Chain Guaranteed Loan Program
What are the loan terms?
- 7 years for Working Capital, 15 years for Equipment and 30 years for Real Estate
- Loan Amounts up to a maximum of $40 Million per Borrower
- Fixed Rate: 7% now (Prime + 2%)
- “Interest-only” for up to 3 years
What does this program do?
The Food Supply Chain Guaranteed Loan Program provides financing to qualified loan applicants who want to start or expand middle of the food supply chain activities such as aggregation, processing, manufacturing, storage, transportation, wholesale, or distribution of food.
Who can apply for this program?
- For-profit or nonprofit businesses
- Food supply chain entrepreneurs
- Cooperatives
- Federally-recognized Tribes
- Public bodies
Are there geographic eligibility restrictions?
No: projects can be located in rural or urban areas
How can guaranteed loan funds be used?
Examples of fund uses by food supply chain businesses include:
- Business conversion, enlargement, repair, modernization, or development
- The purchase and development of land, buildings, and associated infrastructure for commercial or industrial purposes
- Building or equipping facilities for lease to public or private enterprises engaged in commercial or industrial operations
- The purchase and installation of machinery and equipment, including manufacturing and Information Technology (IT) system
- Working capital
How can guaranteed loan funds NOT be used?
- Lines of credit
- Owner-occupied and rental housing
- Golf courses or golf coursesupporting infrastructure
- Racetracks or gambling facilities
- Churches or church-controlled organizations
- Fraternal organizations
- Lending, investment, and insurance companies
- Agricultural production
- Distribution or payment to a beneficiary of the borrower, or to an individual or entity that will retain an ownership interest in the borrower