WASHINGTON – The US Department of Agriculture and Agriculture Secretary Tom Vilsack recently announced $100 million in funds under the new Food Supply Chain Guaranteed Loan Program that would uphold nearly $1 billion in loan guarantees.
The agency said the loan guarantees would back private investment in processing and food system infrastructure that will strengthen the food supply chain. The money was made available through the American Rescue Plan.
“The pandemic exposed vulnerabilities and created extreme disruptions in America’s food supply chain,” Vilsack said. “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 ... and finance critical food supply chain infrastructure.”
The lenders and USDA partners will guarantee up to $40 million in loans to help eligible entities expand meat and poultry processing capacity and finance other food supply chain infrastructure.
Lenders may provide the loans to eligible cooperatives, corporations, for-profits, nonprofits, Tribal communities, public bodies and people in rural and urban areas.
USDA’s Rural Development (RD) will administer the loans with funding used for start-up or expand food supply chain activities such as aggregating, processing, manufacturing, storing, transporting, wholesaling or distributing food. The loan can also address supply chain bottlenecks and increase capacity for the supply chain.
More information about the loans can be found here.