For those in need of financing, the Department of Agriculture (USDA) offers different types of guaranteed loans. Among the available options, the most flexible is the Food Supply Chain Loan Program.
Along with being the most flexible, the Food Supply Chain Loan Program is the first USDA program to be available in all US States and Territories without geographic restrictions. However, this program has been established purely to expand and diversify the food supply chain, that is, the process through which food is produced, processed, stored and distributed. It achieves this goal by offering very favorable lending terms to the ultimate borrower to encourage expansion.
In contrast with all other USDA Rural Development loans, there are no population restrictions, meaning that a project in downtown San Diego or Miami also qualifies for this program. The USDA’s Food Supply Chain Loan Program is expected to fund up to $1.4 billion in projects that fall between the farmer (or rancher) and the retail outlet.
This means that your project is eligible for this program when it involves food manufacturing, storage, transportation, wholesaling, distribution, processing, or any aggregating activity.
When all factors are taken into consideration, this program is probably the best financing option available for most business currently operating within the food supply chain.
It’s not easy to find a program that allows a 40-year term on real estate, offers a fixed interest rate with reduced loan costs. As with all other USDA guarantee plans, this program allows great flexibility on the use of funds, which can be used for various purposes, from acquiring real estate, machinery, and equipment to sustaining costs for starting up, working capital, inventory, and construction. Moreover, 50% of the loan can be used for a refinance. In certain cases, the USDA’s Food Supply Chain Loan Program can also be used in conjunction with new market tax credits.
If your business operates within the food supply chain, there has never been a better time to obtain competitive, convenient, and reliable financing!
up to $40MM
Debt Refinance (no more than 50% of the project cost)
Business Expansion or Conversion
70% LTV for Used Equipment
75% LTV for New Equipment