The $1 Billion Food Industry Loan Program That Most Executives Don’t Know About
Written by Jason Walters
Loans up to $40 million per borrower, program expires September 30th
In December of 2021, the Biden Administration announced a $1+ billion loan program designed to help fund expansion for companies involved in the food supply chain. This includes companies involved in food manufacturing, food transportation, cold storage, and others. With less than 5 months left until the program expires, interested businesses should submit their applications quickly.
Attractive Loan Terms, No USDA fees, and Eligible to all Geographic Areas
The goal of the program is to quickly get funds into projects that will help the food supply chain operate more efficiently. And because this is time sensitive for the national economy, the program's terms were designed to fund large projects and fund them quickly.
Loan program highlights:
• Loans up to $40M per borrower,
• Loan terms up to 40 years.
• No USDA guarantee fees
• Refinancing available for up to 49% of loan amount
• Available to rural and non-rural businesses (first time ever in USDA history)
Limited Awareness of the Program
Despite the attractive terms, many executives who could use the funds to invest in their businesses aren’t aware of the program.
Randy Frescoln, Senior USDA Coordinator for Lincoln Savings Bank has been involved with USDA lending as a borrower, employee, and lender since 1978. Randy states, “This USDA product is the most advantageous business program I have seen in my over 40 years of experience with USDA Programs. This is truly a generational product, and it is unfortunate that so many eligible businesses are unaware it exists. I encourage eligible food supply chain businesses to apply now to help support your expansion project.”
Program Expires September 30th, Get Started with Lincoln Savings Bank
The program is set to expire on September 30th or when funding runs out. But because the application process will take time, business owners are encouraged to apply by mid-June. It is important to note that not all lenders may submit applications- only lenders that have been approved under the USDA’s eligibility guidelines.
If you have a funding need and your business is involved in the food supply chain, please contact the USDA lending team at Lincoln Savings Bank today by visiting www.mylsb.com/usda-loan-program or by calling 833-583-2648.