II 

118TH CONGRESS 

1ST SESSION S. 2951 

To require the Secretary of Agriculture to establish a program to provide 

loans and loan guarantees to assist new and expanded meat processors 

and renderers, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 27 (legislative day, SEPTEMBER 22), 2023 

Mr. MORAN (for himself and Mr. BENNET) introduced the following bill; which 

was read twice and referred to the Committee on Agriculture, Nutrition, 

and Forestry 

A BILL 

To require the Secretary of Agriculture to establish a program to provide loans and loan guarantees to assist 

new and expanded meat processors and renderers, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Butcher Block Act of 

5 2023’’. 

6 SEC. 2. ASSISTANCE FOR NEW AND EXPANDED MEAT PROC7 ESSORS AND RENDERERS. 

8 (a) DEFINITIONS.—In this section: 


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1 (1) COVERED FACILITY.—The term ‘‘covered 

2 facility’’ means a facility— 

3 (A) for which a loan or loan guarantee is 

4 provided to an eligible entity under the pro5 gram; and 

6 (B) that is— 

7 (i) a meat processing establishment 

8 that employs fewer than 500 employees; or 

9 (ii) a rendering facility establishment 

10 that employs fewer than 200 employees. 

11 (2) ELIGIBLE ENTITY.— 

12 (A) IN GENERAL.—The term ‘‘eligible enti13 ty’’ means— 

14 (i) a public, private, or cooperative or15 ganization organized on a for-profit or 

16 nonprofit basis; 

17 (ii) an Indian Tribe (as defined in sec18 tion 4 of the Indian Self-Determination 

19 and Education Assistance Act (25 U.S.C. 

20 5304)); and 

21 (iii) an individual farmer, rancher, or 

22 business owner. 

23 (B) EXCLUSIONS.—The term ‘‘eligible en24 tity’’ does not include— 


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1 (i) an entity described in subpara2 graph (A)(i) that is partly or wholly owned 

3 by a foreign entity; or 

4 (ii) an entity that has processed an 

5 average of not less than 5 percent of the 

6 beef, pork, chicken, or turkey processed 

7 nationally during the immediately pre8 ceding 5 calendar years. 

9 (3) MEAT.—The term ‘‘meat’’ includes poultry. 

10 (4) PROGRAM.—The term ‘‘program’’ means 

11 the program established under subsection (b). 

12 (5) RURAL AREA.—The term ‘‘rural area’’ has 

13 the meaning given the term in section 343(a) of the 

14 Consolidated Farm and Rural Development Act (7 

15 U.S.C. 1991(a)). 

16 (6) SECRETARY.—The term ‘‘Secretary’’ means 

17 the Secretary of Agriculture. 

18 (b) ESTABLISHMENT.—The Secretary shall establish 

19 a program under which the Secretary shall provide loans 

20 and loan guarantees to eligible entities to use in accord21 ance with subsection (f). 

22 (c) PROGRAM PURPOSES.—The purposes of the pro23 gram are— 

24 (1) to increase capacity of meat processing and 

25 rendering; 


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1 (2) to diversify meat processing and rendering 

2 ownership; 

3 (3) to bolster local and regional food security 

4 through increased meat processing and rendering ca5 pacity; and 

6 (4) to improve, develop, or finance meat proc7 essing and rendering capacity or employment, in8 cluding through the financing of working capital. 

9 (d) MAXIMUM AMOUNT.—Except as provided in sub10 section (g)(1), the amount of a loan or loan guarantee pro11 vided under the program shall not exceed $50,000,000. 

12 (e) PRIORITY.—In providing a loan or loan guarantee 

13 under the program, the Secretary shall give priority to eli14 gible entities that— 

15 (1) are able to increase overall meat processing 

16 or rendering capacity in the region involved, as de17 termined by the Secretary; and 

18 (2) are located in a rural area. 

19 (f) USE OF LOANS AND LOAN GUARANTEES.—An eli20 gible entity that receives a loan or loan guarantee under 

21 the program shall use that loan or loan guarantee, as ap22 plicable, to construct, expand, modify, refurbish, or re23 equip a covered facility described in clause (i) or (ii) of 

24 subsection (a)(1)(B). 

25 (g) SPECIAL RULES FOR COOPERATIVES.— 


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1 (1) AMOUNT OF LOAN OR LOAN GUARANTEE.— 

2 The Secretary may provide a loan or loan guarantee 

3 of not more than $100,000,000 to an eligible entity 

4 described in subsection (a)(2)(A)(i) if the loan in5 volved is used to carry out a project that signifi6 cantly increases meat processing or rendering in the 

7 State or region— 

8 (A) in which the applicable covered facility 

9 is or will be located; and 

10 (B) that has insufficient processing or ren11 dering capacity, as determined by the Sec12 retary. 

13 (2) ACCOUNTS RECEIVABLE.—In the case of a 

14 loan or loan guarantee provided to an eligible entity 

15 described in subsection (a)(2)(A)(i), the Secretary 

16 may take accounts receivable as security for the obli17 gations entered into in connection with the loan or 

18 loan guarantee, and the eligible entity may use ac19 counts receivable as collateral to secure the loan or 

20 loan guarantee, if the Secretary determines that 

21 such actions would not create or otherwise con22 tribute to an unreasonable risk of default or loss to 

23 the Federal Government. 

24 (h) CONDITIONS APPLICABLE WITH RESPECT TO

25 USING LOAN INVOLVED FOR REFINANCING.—An eligible 


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1 entity receiving a loan or loan guarantee under the pro2 gram may use not more than 25 percent of the involved 

3 loan to refinance a loan obtained for carrying out an activ4 ity described in subsection (f) if— 

5 (1) the eligible entity is current and performing 

6 with respect to the loan to be refinanced; 

7 (2) the eligible entity has not defaulted on any 

8 payment required to be made with respect to the 

9 loan to be refinanced; 

10 (3) none of the collateral for the loan to be refi11 nanced has been converted; and 

12 (4) there is adequate security or full collateral 

13 for the loan to be refinanced. 

14 (i) CONDITIONS RELATING TO CARCASSES.—An eli15 gible entity receiving a loan or loan guarantee under the 

16 program— 

17 (1) shall accept all carcasses allowed under 

18 Federal law; and 

19 (2) shall not limit the size or type of producers 

20 from which the eligible entity procures carcasses. 

21 (j) APPRAISAL.—The Secretary may require that any 

22 appraisal made in connection with a loan or loan guar23 antee provided under the program be conducted by a spe24 cialized appraiser that uses standards that are similar to 


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1 standards used for similar purposes in the private sector, 

2 as determined by the Secretary. 

3 (k) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to the Secretary to carry 

5 out this section $100,000,000 for each of fiscal years 2024 

6 through 2029. 

7 SEC. 3. NEW, MOBILE, AND EXPANDED MEAT PROCESSING 

8 AND RENDERING GRANTS. 

9 (a) DEFINITIONS.—In this section: 

10 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti11 ty’’ means— 

12 (A) a governmental entity; 

13 (B) a public, private, or cooperative orga14 nization organized on a for-profit or nonprofit 

15 basis; 

16 (C) an Indian Tribe (as defined in section 

17 4 of the Indian Self-Determination and Edu18 cation Assistance Act (25 U.S.C. 5304)); and 

19 (D) an institution of higher education. 

20 (2) MEAT.—The term ‘‘meat’’ includes poultry. 

21 (3) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Agriculture. 

23 (b) GRANTS.—The Secretary shall make grants to eli24 gible entities to use in accordance with subsection (d). 

25 (c) PURPOSES.—The purposes of this section are— 


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1 (1) to create more resilient local and regional 

2 food systems; 

3 (2) to expand, diversify, and increase resilience 

4 in meat processing and rendering activities; 

5 (3) to improve compliance of meat processors 

6 with livestock and poultry processing statutes (in7 cluding regulations), including the Federal Meat In8 spection Act (21 U.S.C. 601 et seq.) and the Poultry 

9 Products Inspection Act (21 U.S.C. 451 et seq.); 

10 (4) to reduce barriers to entry for new meat 

11 processors and renderers; and 

12 (5) to update, expand, or otherwise improve ex13 isting meat processing and rendering facilities. 

14 (d) USE OF FUNDS.—An eligible entity receiving a 

15 grant under this section may use the grant to establish 

16 or support new, innovative, or expanded meat processing 

17 or rendering activities, or other activities that will increase 

18 the customer base or revenue returns of livestock and 

19 poultry producers, including by undertaking projects— 

20 (1) to identify and analyze business opportuni21 ties, including feasibility studies required for credit22 worthiness; 

23 (2) to identify, train, and provide technical as24 sistance to existing or prospective entrepreneurs and 

25 managers or processing or rendering facilities; 


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1 (3) to achieve compliance with applicable Fed2 eral, State, or local regulations; 

3 (4) to conduct regional, community, and local 

4 economic development planning and coordination 

5 and leadership development; 

6 (5) to establish a center for training, tech7 nology, and trade that will provide training to meat 

8 processing and rendering employees; and 

9 (6) to incentivize new, innovative, or mobile en10 terprises to increase or improve local and regional 

11 meat processing and rendering. 

12 (e) CONDITIONS RELATING TO CARCASSES.—An eli13 gible entity receiving a grant under this section— 

14 (1) shall accept all carcasses allowed under 

15 Federal law; and 

16 (2) shall not limit the size or type of producers 

17 from which the eligible entity procures carcasses. 

18 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to the Secretary to carry 

20 out this section $25,000,000 for each of fiscal years 2024 

21 through 2029. 

Æ 


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