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USDA Food Supply Chain Loan Program

GNB Bank participates in the USDA Rural Development Initiative “Build Back Better”. The purpose of the program, Food Supply Chain Guaranteed Loan Program, is to strengthen the food supply chain and increase access to affordable capital for food systems infrastructure in America’s rural and urban communities.

If you believe you qualify for funding through this program, we encourage you to reach out to your GNB lender for assistance.

What does the program do?

The Food Supply Chain Guaranteed Loan Program provides financial support to qualified lenders whose loan applicants want to start or expand middle of the food supply chain activities such as aggregation, processing, manufacturing, storage, transportation, wholesale, or distribution of food. The program’s goal is to increase capacity and help create a more resilient, diverse, and secure U.S. food supply chain.

Who can apply for this program?

  • For-profit or nonprofit businesses
  • Cooperatives
  • Food supply chain entrepreneurs
  • Public bodies
  • Federally-recognized tribes

How can the guaranteed loan funds be used?

Examples of fund uses by food supply chain businesses include:

  • Business conversion, enlargement, repair, modernization, or development
  • The purchase and development of land, buildings, and associated infrastructure for commercial or industrial purposes
  • Building or equipping facilities for lease to public or private enterprises engaged in commercial or industrial operations
  • The purchase and installation of machinery and equipment, including manufacturing and Information Technology (IT) systems
  • Working capital

How can the guaranteed loan funds NOT be used?

  • Lines of credit
  • Agricultural production
  • Owner-occupied and rental housing
  • Golf courses or golf-course supporting infrastructure
  • Racetracks and gambling facilities
  • Churches or church-controlled organizations
  • Fraternal organizations
  • Lending, investment, and insurance companies
  • Distribution or payment to the beneficiary of the borrower, or to an individual or entity that will retain an ownership interest in the borrower

Additional information and resources can be found on the USDA website: https://www.rd.usda.gov/food-supply-chain-guaranteed-loans

 

 

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