Loans for the food supply chain – AG WEST INFORMATION NETWORK
Loans for the food supply chain
There is another tool for poultry and meat producers to expand their businesses and reduce their dependence on a few processors.
Under the Food Supply Chain Guaranteed Loans program, USDA will partner with lenders to guarantee loans of up to $ 40 million to help expand meat processing and food processing capacity. poultry and finance other infrastructure in the food supply chain.
Co-operatives, corporations, for-profit organizations, non-profits, tribal communities, government agencies, and people from rural and urban areas can apply.
The Food Supply Chain Secured Loan Program is managed by Rural Business-Cooperative Services. Administrator Karama Neal:
NEAL: “The USDA could guarantee a loan to a group of producers, such as cattle, pigs, poultry producers, who have formed a cooperative to better control access and to mark their products and obtain a higher value for their products. Secured loans could finance the equipment of a medium-sized facility or the expansion of production capacity, additional product lines, consumer packaging upgrades or value-added post-processing. There are several kinds of things. The program could secure a loan for a food center, seeking to expand its operations by adding additional cold storage facilities. It is quite wide. “
Neal pointed out that the broad scope of the program is designed to support the entire food supply chain.
Producers can apply for food supply chain loans online only by visiting the USDA website at www.usda.gov.