USDA launches loan guarantee program
The USDA is launching a $100 Million-dollar loan guarantee program fund paid for through the American Rescue Plan Act.
Ag Secretary Vilsack says it’s meant to ease the way for expanding meat and poultry processing and food supply chain infrastructure for things such as mobile processing units, cold storage expansion and producer co-ops to brand or market their products.
“These loan guarantees are important to bankers and those who provide the financing because they may not be as familiar with the risks associated and there’s a little reluctance on the part of commercial lenders to establish and to provide the credit.”
Vilsack says it’s focused on the middle of the supply chain, “And can impact and affect those who are involved in the aggregation of supply, those who are involved in the processing of supply, those who are manufacturing or wholesaling or distributing.”
Vilsack says he’s confident the $100 Million will be leveraged multiple times over into potentially hundreds of millions of dollars in loan guarantees to free up the necessary credit to strengthen the supply chain. Lender outreach training is planned October 14th.