FACT SHEET

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY

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March 2011

 Sugar Storage Facility Loan Program

Overview

The 2008 Farm Bill authorized 

loans to processors of domestically produced sugarcane and 

sugar beets for the construction or 

upgrading of storage and handling facilities for raw sugars and 

refined sugars. The Sugar Storage 

Facility Loan Program (SSFL) is 

administered by the U. S. Department of Agriculture’s (USDA) 

Farm Service Agency (FSA).

Eligible Borrowers

To be eligible, processors must:

• Have a satisfactory credit 

history, no delinquent federal 

debt and demonstrate an 

ability to repay debt;

• Demonstrate a need for increased storage capacity;

• Demonstrate compliance 

with any applicable local 

zoning, land use and building codes for the applicable 

storage facility structures;

• Annually provide USDA’s 

Commodity Credit Corporation (CCC) proof of all-peril 

insurance on the structure 

and contents, and flood insurance if applicable;

• Demonstrate compliance 

with the National Environmental Policy Act regulations, including undergoing 

an environmental assessment 

(EA) for proposed construction activity;

• Not have been convicted 

under federal or state law of 

a disqualifying controlled 

substance violation; and

• Be approved by CCC to 

store sugar either owned by 

CCC or pledged as security 

to CCC for nonrecourse marketing assistance loans.

Eligible Storage or Handling 

Equipment

Loans may be made only for 

the purchase and installation 

of eligible storage facilities, 

permanently affixed handling 

equipment or the remodeling of 

existing facilities. Eligible facilities and equipment include:

• New conventional type bins 

or silos designed for and 

used to store raw or refined 

sugar, having a useful life of 

at least 15 years;

• New flat-type storage structures, including a permanent 

concrete floor and bulkheads 

designed for and used to 

store raw or refined sugar, 

having a useful life of at 

least 15 years;

• New storage structures designed for and used to store 

in-process sugar, having 

a useful life of at least 15 

years;

• New electrical equipment, 

such as lighting, motors and 

wiring, integral to the proper 

operation of the sugar storage and handling equipment;

• New equipment to improve, 

maintain or monitor the 

quality of stored sugar, such 

as moisture testers and heat 

detectors, in conjunction 

with a proposed storage 

facility; and

• New concrete foundations, 

aprons, pits and pads, including site preparation, labor 

and material essential to the 

proper operation of the sugar 

storage and handling equipment.

Term of Loan

The maximum term of the loan 

is 15 years. No extensions will 

be granted.

Security for Loan

All loans shall be secured by a 

promissory note and security 

agreement, which shall:

• Grant CCC a security interest in the storage facility;

• Grant CCC a security interest in other assets used as 

collateral; and

• Be executed as required by 

applicable state law.

Additional security will be required as necessary to adequately 

secure the loan to the extent that 

CCC determines the value of primary and additional security is at 

least equal to 125 percent of the 

loan amount. Types of acceptable 

additional security are:

• Real estate;

• Chattels;

• Crops in storage; and

• Other available assets offered as collateral.
FACT SHEET

Sugar Storage Facility Loan Program March 2011

Loan Amount

The maximum principal amount 

of any farm storage facility loan 

shall be 85 percent of the net 

cost of the applicant’s needed 

storage or handling equipment.

Down Payment

A minimum down payment representing the difference between 

the net cost of the storage facility 

and the amount of the loan shall 

be made by the loan applicant to 

the supplier or contractor before 

the loan is disbursed.

Interest

Loans shall bear interest at the 

rate equivalent to the rate of 

interest charged on U.S. Treasury 

securities of comparable maturity on the date the loan is approved. The interest rate for each 

loan will remain in effect for the 

term of the loan.

Installment Payments

Equal installments of principal 

plus interest will be amortized 

over the loan term for purposes 

of setting a payment schedule. 

Installments are due and payable 

not later than the last day of each 

12-month period of the loan, 

until the principal plus interest 

has been paid in full.

Applicant Responsibilities and 

Other Requirements

Unless otherwise authorized, delivery of storage structure parts, 

site preparation and construction 

cannot begin until after the loan 

is approved by the approving 

committee. Unless an extension 

of time is approved, loan approvals expire eight months after the 

approval date during which time 

the applicant must complete construction and submit final cost 

documentation.

Applicants pay all loan-making 

fees and closing costs. This 

includes, but is not limited to, 

attorney fees for loan closings, 

environmental assessments and 

studies, chattel and real estate 

appraisals, title opinions, title insurance, title searches, filing and 

recording all real estate liens, 

fixture filings, subordinations, 

credit reports, collateral lien 

searches and filing and recording financing statements for the 

collateral.

Loans cannot be disbursed 

until construction is completed, 

applicants provide final cost 

documentation, final net cost is 

determined and the facility is 

inspected by the FSA.

Other requirements apply. Check 

with USDA Service Centers for 

details. Information is also available on FSA’s website at www.

fsa.usda.gov

The U.S. Department of Agriculture (USDA) 

prohibits discrimination in all of its programs 

and activities on the basis of race, color, 

national origin, age, disability, and where applicable, sex, marital status, familial status, 

parental status, religion, sexual orientation, 

political beliefs, genetic information, reprisal, or because all of part of an individual’s 

income is derived from any public assistance program. (Not all bases apply to all 

programs.) Persons with disabilities who 

require alternative means for communication of program information (Braille, large 

print, audiotape, etc.) should contact USDA’s 

TARGET Center at (202) 720-2600 (voice 

and TDD). 

To file a complaint of discrimination, write to 

USDA, Assistant Secretary for Civil Rights, 

Office of the Assistant Secretary for Civil 

Rights, 1400 Independence Avenue, S.W., 

Stop 9410, Washington, DC 20250-9410, or 

call toll-free at (866) 632-9992 (English) or 

(800) 877-8339 (TDD) or (866) 377-8642 

(English Federal-relay) or (800) 845-6136 

(Spanish Federal-relay). USDA is an equal 

opportunity provider and employer.

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