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USDA Food Supply Chain Guaranteed Loan Program (FSC)

USDA Food Supply Chain Guaranteed Loan Program (FSC)

Grow your food systems with a USDA Loan Guarantee.

The Food Supply Chain Guaranteed Loan Program was announced on December 9th of 2021 in response to the exposed vulnerabilities in America's food supply chain during the COVID-19 epidemic. This program guarantees loans of up to $40 million for qualified lenders to finance food systems projects, specifically for the start-up or expansion of activities in the middle of the food supply chain. The program supports new investments in infrastructure for food aggregation, processing, manufacturing, storage, transportation, wholesaling, and distribution to increase capacity and create a more resilient, diverse, and secure U.S. food supply chain.

How can USDA commercial loan program funds be used? Eligible uses include, but are not limited to: 
  • Business conversion, enlargement, repair, modernization, or development
  • The purchase and development of land, buildings, and associated infrastructure for commercial or industrial purposes
  • Building or equipping facilities for lease to public or private enterprises engaged in commercial or industrial operations
  • The purchase and installation of machinery and equipment, including manufacturing and Information Technology (IT) systems
  • Working capital

What can loan funds NOT be used for?
  • Lines of credit
  • Owner-occupied and rental housing
  • Golf courses or golf course supporting infrastructure
  • Racetracks or gambling facilities
  • Churches or church-controlled organizations
  • Fraternal organizations
  • Lending, investment, and insurance companies
  • Agricultural production
  • Distribution or payment to a beneficiary of the borrower, or to an individual or entity that will retain an ownership interest in the borrower

What is considered an eligible area?
  • There are no geographic restrictions for this program.

What types of businesses qualify for  the USDA commercial loan program?
  • For-profit or nonprofit businesses
  • Cooperatives
  • Federally-recognized Tribes
  • Public bodies
  • Food supply chain entrepreneurs

What are the business restrictions?
  • Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence
  • Private-entity borrowers must demonstrate that loan funds will remain in the U.S. and the facility being financed will primarily create new or save existing jobs for rural U.S. residents

Contact one of our USDA Loan Guarantee experts.

Frayne Bentley

SBA Regional Executive

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