USDA Launches Loan Guarantee Program

WASHINGTON, D.C. — Department of Agriculture (USDA) Secretary Tom Vilsack last week announced USDA is deploying $100 million under the new Food Supply Chain Guaranteed Loan Program to make available nearly $1 billion in loan guarantees; these loan guarantees will back private investment in processing and food supply infrastructure that will strengthen the food supply chain for the American people.

USDA is making the funding available through the American Rescue Plan Act. The program is part of the Biden-Harris Administration’s efforts to address food system challenges dating back decades and further exacerbated by the COVID-19 pandemic. These investments will help essential processing and supply chain infrastructure that will ultimately deliver more opportunities and fairer prices for farmers, they will give people greater access to healthier foods and they will help eliminate bottlenecks in the food supply chain.

“The pandemic exposed vulnerabilities and created extreme disruptions in America’s food supply chain. The reduction in meat processing capacity is just one example of the supply chain bottlenecks that affect small and midsize farmers,” Vilsack said. “Under the leadership of President Biden and Vice President Harris, USDA is investing in ways to improve America’s food supply chain. The funding we’re announcing today will leverage approximately a billion dollars in public- and private-sector investments that will significantly expand meat and poultry processing capacity and finance critical food supply chain infrastructure.”

Food Supply Chain Guaranteed Loan Program

USDA Rural Development (RD) will administer the loans. Funding may be used to: