USDA Loans

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.

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Borrowers Must Be:

  • Engaged in aggregating, processing, manufacturing, storing, transporting, wholesaling, or distributing food or:
     
  • A business proposing to engage in : aggregating, processing, manufacturing, storing, transporting, wholesailing, or distributing food

  • A business engaged in commercial food production

Maximum Loan Amount $40 Million
No Fees- There are no guarnatee or annual fees for this program.

Eligibile Use of Funds:

 
  • Working capital

  • Purchase and installation of machinery/equipment including information tecnology systems

  • Building or equipping facilities for lease to enterprises engaged in commercial or industrial operations

  • Business conversion, modernization, development, repair, or enlargement

  • Purchase and development of land and buildings

  • Loan funds must remain in the United States
Blue Ridge Bank is an approved lender with the USDA and has a dedicated team of experienced lenders that work directly with potential borrowers. Our team will handle the loan submission to the USDA to determine eligibility and final approval on your behalf.  Contact us today to discuss this amazing opportunity made available to eligible businesses while funds are still available.


Todd Hubbell
SVP, Director of GGL [email protected]
703-772-6671
Greg McKay
SVP, Director of GGL [email protected]
775-762-1622
Stephen Ricks
VP, Senior Business Development Associate
317-378-0655

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
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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