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USDA loan backs investment in processing and food supply infrastructure

USDA loan backs investment in processing and food supply infrastructure
Written by Publishing Team

U.S. Agriculture Secretary Tom Vilsack recently announced that the U.S. Department of Agriculture will set aside $100 million under the new Food Supply Chain Guaranteed Loan Program to provide nearly $1 billion in loan guarantees.

These loan guarantees will support private investment in food processing and supply infrastructure that will strengthen the food supply chain for the American people.

The USDA provides funding through the US Bailout Act. The program is part of the Biden-Harris administration’s efforts to address decades-old diet challenges that have been exacerbated by the COVID-19 pandemic. These investments will help the basic supply chain and processing infrastructure that will eventually provide more opportunities and fairer prices for farmers; It will also give people greater access to healthy food, and help eliminate bottlenecks in the food supply chain.

The pandemic has exposed vulnerabilities and created severe disruptions in America’s food supply chain. Reducing meat processing capacity is just one example of supply chain bottlenecks affecting small and medium-sized farmers, Vilsack said. “Under the leadership of President Biden and Vice President Harris, the USDA is investing in ways to improve America’s food supply chain. The funding we are announcing today will provide nearly $1 billion in public and private sector investment that will significantly expand meat and poultry processing capacity and infrastructure financing. vital to the food supply chain.

Through the Food Supply Chain Guaranteed Loan Program, the USDA will partner with lenders to guarantee loans of up to $40 million to help eligible entities expand meat and poultry processing capacity and fund other food supply chain infrastructure. Lenders may extend loans to cooperatives, corporations, profit and non-profit organizations, tribal communities, public bodies, and people in eligible rural and urban areas.

The loans will be administered by the US Department of Agriculture for Rural Development. Funding can be used to: start or expand food supply chain activities such as food assembly, processing, manufacturing, storage, transportation, wholesaling or distribution; address supply chain bottlenecks; increase capacity; and help create a more resilient, diverse, and secure American food supply chain.

The USDA accepts electronic applications from lenders through the online food supply chain application system until the money is spent. Paper applications will not be accepted. To access the online application system, lenders must send an application to rdfoodsupplychainloans@usda.gov. For more information, go to rd.usda.gov/foodsupplychainloan.

The USDA Rural Development encourages applications for projects that advance recovery from the COVID-19 pandemic, promote equitable access to USDA programs and services, and reduce the effects of climate change on rural communities. For more information, visit rd.usda.gov/priority-points.

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