USDA launches $100M loan-guarantee program to expand meat and poultry processing capacity

The United States Department of Agriculture (USDA) on Oct. 4 announced that the department is planning for another $100 million in funding from the American Rescue Plan Act. 

The money would leverage hundreds of millions more in lending through community and private-sector lenders to expand meat and poultry processing capacity and finance other food supply-chain infrastructure. The goal is to expand competition and alleviate bottlenecks in the food-supply chain that were exacerbated by the pandemic and helped lead to meat shortages and higher prices.

The USDA plans to publish specific details on the new program and how to apply as part of USDA’s Build Back Better Initiative, a plan to invest $4 billion to “strengthen the resiliency of America’s food supply chain while promoting competition.” The new commitment of $100 million for loan guarantees comes on top of the previously announced $500 million in federal spending to expand meat and poultry processing capacity.

Through this program, USDA will use $100 million in funding from the American Rescue Plan Act to “catalyze millions more in lending available for working capital, facilities, equipment, and other investments.” The loan guarantees seek to help to start up or expand businesses in the food supply chain that aggregate, process, manufacture, wholesale, or distribute food; address supply-chain disruptions; and increase the resiliency of the food supply chain.

The USDA is preparing to issue a notice soon to announce eligibility requirements and the application window.