Together, America Prospers

Food Supply Chain Guaranteed Loan Program

What does this 

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

• Federally-recognized Tribes

• Public bodies

• Food supply

chain entrepreneurs

What types of lenders are eligible to 

use the loan guarantee?

In order to participate in the program, 

lenders must be approved by 

Rural Development using criteria 

from the OneRD Guaranteed Loan 

Initiative (information is available at 

this link: https://go.usa.gov/xe8QV). 

This includes lenders subject to 

supervision and credit examinations 

by an applicable agency of the United 

States or a state, such as:

• Federal and state-chartered banks

• Savings and loan associations

• Farm Credit Banks with direct

lending authority

• Credit Unions

Community development loan funds 

and other nonregulated lending 

institutions approved under the 

OneRD regulation can also participate. 

Information on the approval process 

for nonregulated lending institutions 

is available at this link: https://www.

youtube.com/watch?v=3AWJiCDY-Cs.

Are there geographic 

eligibility restrictions?

• No: projects can be located in rural

or urban areas

• An approved lender can be located

anywhere in the United States

How can 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 guaranteed loan funds 

NOT be used?

• Lines of credit

• Owner-occupied and rental housing

• Golf courses or golf coursesupporting infrastructure

• Racetracks or gambling facilities

• Churches or church-controlled

organizations

• Fraternal organizations

• Lending, investment, and insurance 

companies

• Agricultural production

• Distribution or payment to a

beneficiary of the borrower, or to an

individual or entity that will retain an

ownership interest in the borrower
Food Supply Chain Guaranteed Loan Program

How do we get started?

• Interested borrowers can work with 

their own lender

• USDA Rural Development will accept 

applications from lenders until funds 

are expended

• Lenders can find additional 

information regarding underwriting 

and loan terms at https://www.

rd.usda.gov/foodsupplychainloans

Who can answer questions?

Email rdfoodsupplychainloans@usda.gov

What governs this program?

This program is authorized under 

Section 1001 of the American 

Rescue Plan Act (available at this link: 

https://go.usa.gov/xe8UU)

Why does USDA Rural Development 

do this?

This program is part of USDA’s 

Build Back Better Initiative 

(information is available at this link: 

https://www.usda.gov/build-back-better) 

to strengthen the food supply 

chain and increase access to 

affordable capital for food systems 

infrastructure in America’s rural and 

urban communities.

NOTE: Because citations and other information may be subject to change, 

please always consult the program instructions listed in the section above 

titled “What Governs This Program?” You may also contact your local office for 

assistance. You will find additional forms, resources, and program information at 

rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Last Updated December 2021