USDA FOOD SUPPLY GUARANTEE PROGRAM
$1 BILLION AVAILABLE THROUGH THE AMERICAN RESCUE PLAN
The Food Supply Chain Guaranteed Loan Program is a part of USDA’s Build Back Better initiative to strengthen critical supply chains and our food system. The USDA will partner with lenders to guarantee individual loans of up to $40 million to help eligible entities finance food supply chain infrastructure. Unlike other USDA programs, there are no geographic restrictions for projects under this program. Projects can be located in both rural and urban areas.
Borrowers Must Be:
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Maximum Loan Amount $40 Million
No Fees- There are no guarnatee or annual fees for this program.
Eligibile Use of Funds:
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Todd Hubbell
SVP, Director of GGL [email protected]
703-772-6671
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Greg McKay
SVP, Director of GGL [email protected]
775-762-1622
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Stephen Ricks
VP, Senior Business Development Associate
317-378-0655
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Frequently Asked Questions
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What are the advantages of using a USDA guaranteed loan? What makes it different from other loans?
Lenders that receive a federal loan guarantee typically are able to offer more competitive interest rates and terms. From a borrower’s perspective, closing and making payments on a guaranteed loan is unlikely to feel different from any other loan. However, it’s always best to work with your lender to determine whether a USDA guaranteed loan best fits your financing needs. Some borrowers may be able to access more affordable credit through non-participating lenders or other federal programs.
Are there any limits on urban or rural areas?
No, projects can be located in both rural and urban areas.
Are there any equity/capital and collateral requirements?
- Existing business needs a minimum of 10% balance sheet equity or 10% or more borrower investment as a percent of the total eligible project cost. New businesses need 20–25% balance sheet equity or borrower investment as a percent of total project cost, depending on construction financing requirements.
- The discounted collateral value must at least equal the proposed loan amount.
- Unsecured guarantees for the entire term of the guaranteed loan and at least equal to the guarantor’s percent interest or membership in the borrower times the guaranteed loan amount is required from any person or entity owning a 20-percent or greater interest in the borrower.
I'm interested in applying. What do I do now?
We have a team of dedicated USDA experts ready to help you. Reach out to them directly to determine your eligibility.
Todd Hubbell
SVP, Director of GGL [email protected]
703-772-6671
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Greg McKay
SVP, Director of GGL [email protected]
775-762-1622
|
Stephen Ricks
VP, Senior Business Development Associate
317-378-0655
|
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