USDA program releases $ 1 billion for meat and poultry processors
Agriculture Secretary Tom Vilsack said the US Department of Agriculture is deploying $ 100 million under the new food supply chain guaranteed loan program to make available nearly a billion dollars in loan guarantees; these loan guarantees will support private investments in food processing and supply infrastructure that will strengthen the food supply chain for the American people.
The USDA makes the funding available through the American Rescue Plan Act. The program is part of the Biden-Harris administration’s efforts to address food system challenges stretching back decades and further exacerbated by the COVID-19 pandemic. These investments will help critical processing and supply chain infrastructure that will ultimately provide more opportunities and fairer prices for farmers, give people better access to healthier food, and help eliminate bottlenecks in the food supply chain.
“The pandemic has exposed vulnerabilities and created extreme disruption in the US food supply chain. The reduction in meat processing capacity is just one example of supply chain bottlenecks affecting small and medium-sized farmers, ”said Vilsack. “Under the leadership of President Biden and Vice President Harris, the USDA is investing in ways to improve the US food supply chain. The funding we are announcing today will leverage approximately $ 1 billion in public and private sector investments that will dramatically increase meat and poultry processing capacity and finance critical food supply chain infrastructure.
Food Supply Chain Secured Loan Program
Under the Food Supply Chain Secured Loans Program, USDA will partner with lenders to secure loans of up to $ 40 million to help eligible entities expand their food processing capacity. meat and poultry and to fund other infrastructure in the food supply chain. Lenders can make loans to cooperatives, qualifying companies, for-profit, not-for-profit, tribal communities, government agencies, and residents of rural and urban areas.
USDA Rural Development will administer the loans. Funding can be used for:
- start or expand food supply chain activities such as aggregation, processing, manufacturing, storage, transportation, wholesale or distribution of food.
- address supply chain bottlenecks.
- increase capacity and help create a more resilient, diverse and secure U.S. food supply chain.
USDA accepts electronic applications from lenders through the Food Supply Chain’s online application system until funds are spent. Paper applications will not be accepted.
To access the online application system, lenders must submit an application to [email protected]