USDA Food Supply Chain Loan Guarantee Program

The USDA announced a new loan program to strengthen America’s food supply chain. As we experienced throughout the pandemic, there are weaknesses in our nation’s supply chain, and this federal program aims to bolster it. The financing will support any businesses involved in aggregating, processing, manufacturing, storing, transporting, wholesaling or distributing food. Both startups and established businesses are eligible, as long as the business is in the middle of the food supply chain.

Unlike other USDA loan programs, borrowers do not have to be in a rural area to be eligible – businesses in urban areas can qualify too. For-profit or nonprofit businesses, cooperatives, federally-recognized Tribes, public bodies and food supply chain entrepreneurs are all eligible to apply. There are no guarantee or annual fees for this program and the maximum loan amount is up to $40 million.

Depending on available collateral, the term is up to 40 years with a potential fixed rate. Funds can be used to refinance existing debt, up to 50% of the total loan funds. The USDA is making $1 billion available through the American Rescue Plan Act and applications will be taken until the funds run out. This is a unique federal program that could help a diverse range of businesses grow and thrive.

Check out this comprehensive overview and connect with a member of Live Oak Bank’s in-house USDA team to learn more about this program.

USDA Food supply chain loan guarantee program

Live Oak's In-House USDA Team