AMS Local Meat Capacity Grant

(Local MCap)
Summary

• Overview - What does this program entail?

• Eligibility - Who can apply for these funds?

• Application Information

• Technical Assistance

Website: https://www.ams.usda.gov/localmcap
Overview - What does this program entail?
Legislative Authority

The Local MCap program is authorized by Section 1001(b)(4) of the American Rescue 

Plan Act (ARPA) (Pub. L. No. 117—2), which funds “loans and grants and other 

assistance to maintain and improve food and agricultural supply chain resiliency.” 

Local MCap is administered by the Agricultural Marketing Service (AMS).

Funding 

Source Project Type

Duration

(Months)

Minimum

Award

Maximum

Award

ARPA Processing Expansion Projects36$100,000$5,000,000

ARPA Simplified Equipment Only Projects24$10,000$250,000
Program Goals

• Increase processing capacity and promoting more competition in the meat and 

poultry sector

• Support meat and poultry processors and rendering facilities with smaller scale 

projects. 

• Expand and diversify meat and poultry processing capacity.

• Contribute to the resilience of the food and agricultural supply chains through 

support for diversified, value-added agriculture and support the policies of Executive 

Order 14017 (Executive Order on America’s Supply Chains). 

• Promote competition in the food system and support the policies of Executive Order 

14036 (Executive Order on Promoting Competition in the American Economy). 
Program Priorities

• Project Prioritization: 

o Demonstrate engagement with and benefit to local livestock and poultry producers, including 

underserved producers.

• AMS may prioritize: 

o Diversity in applicants funded in geographic regions and across a variety of species.

o Leverage significant non-federal financial and technical resources, as appropriate to the scope and scale of 

the projects. Any match above and beyond the match requirements may lend support.

o Size of the operation according to number of head processed annually or number of employees.

o Projects that:

o Are located in communities have distressed or at-risk scores on the Distressed Communities Index 

(DCI) developed by the Economic Innovation Group.

o Enhance worker and/or farmer voice through cooperative ownership, payment of living wages, 

workers training and/or promotion of safe working conditions.

o Enhance local and regional environmental stewardship and climate benefits.
Tentative 2023 Program Schedule

Grant RFA Publication Date RFA Closing Date

Local Meat 

Capacity Grant 

(Local MCap)

April 19, 2023 July 19, 2023
Eligibility - Who can apply?
Who is Eligible? 

Eligible Applicants include: Tribes and Tribal entities, for-profit businesses 

and non-profits, and State or local governments. All applicants must be 

engaged in meat and poultry processing. 

o Private entities must be independently owned and operated and domestically owned.

o Facilities must be physically located within the 50 States, the Commonwealth of Puerto Rico, the 

District of Columbia, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the

Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the 

Republic of the Marshall Islands.
Eligible Entities - Facilities

• Must process or plan to process one or more species subject to the Federal Meat 

Inspection Act (FMIA) or the Poultry Product Inspection Act (PPIA).

• Must possess or plan to obtain:

o Federal Grant of Inspection, a grant of inspection under the Food Safety Inspection Service (FSIS) 

Cooperative Interstate Shipment Program (CISP), or a state meat and poultry inspection program.

• Plants processing non-amenable species under voluntary FSIS or state inspection are 

also eligible to apply for funding. 
Non-Eligible Entities

• Nationally dominant beef, pork, chicken or turkey processors.

• Entities that received grants under the AMS Meat and Poultry Inspection Readiness 

Grant (MPIRG) program may apply for this program, but they must successfully 

complete and close out their MPIRG grant before being awarded a Local MCap grant 

award.

• Meat and poultry processing entities that are custom-exempt or otherwise

uninspected. 

• Meat and poultry processing entities that are exclusive for non-commercial use.

• Multiple applications from entities with identical or greater than 75 percent common 

ownership, from a parent, subsidiary, or affiliated organization. 
Project Types

• Processing Expansion Projects

o Grant awards from $100,000 to $5 million

o Projects that include equipment purchases and facility upgrades.

o Equipment only projects are allowable if the equipment costs are over $250,000.

o Funding requests that include building and facility upgrades, can include improvements, 

rearrangements, and/or alterations to a facility that are required to use a space more effectively 

and accommodate new or upgraded equipment and processes.

o Has Match Requirement.

• Simplified Equipment Only

o Offers a simplified application to fund smaller grant awards from $10,000 and $250,000.

o Fixed Price Grant- funds only the amount equal to the cost of the equipment up to $250,000.

o Examples: sausage stuffer, patty maker, smoker, etc.

o No Match or Cost Share Required.
Processing Expansion Projects - Allowable Activities

• Examples of project activities eligible for funding:

o Expanding processing capacities to increase production volumes, process additional meat and 

poultry species, or add new value-added product types.

o Upgrading processing and manufacturing equipment.

o Increasing packaging and labeling capacity.

o Increasing cold storage capacity.

o Improving slaughter and humane handling infrastructure.

o Installation of holding pens or wastewater management systems, or other improvements that do 

not require breaking new ground or constructing new facilities.

o Purchasing equipment or upgrading facilities for rendering carcasses and animal byproducts.

o Minor facility alterations and repairs and equipment purchases for new or improved on-premise 

retail space.

o See RFA for full list.
Processing Expansion Projects - Unallowable Activities

• Project activities not eligible for funding :

o New construction and/or structural changes to an existing building/facility.

 Resulting in a square foot expansion or changes to the building’s floor, foundation, exterior or 

load bearing walls.

o Routine maintenance and repair of an organization’s buildings and operational facilities.

o Acquiring real property (including land purchases) or any interest therein.

o Paying ongoing staffing or operational costs not specifically tied to the proposed expansion 

project.

o Expenses that have been or will be reimbursed under any other Federal, State, or local 

government funding.

o Activities already funded by another Federal award program.
Processing Expansion ProjectsCost Share and Matching Cost Share and Matching

• Match is only required for the Processing Expansion Projects.

o 50% of the total proposed project costs.

o Example – Total project costs = $1 million - $500,000 in federal funds and $500,000 in match.

o Reduced Match of 25% of total proposed project cost - Available to entities that identify as Small 

and Underserved Business Owners, Historically Underserved Farmers or Ranchers, or for other 

businesses that qualify under the Small Business Administration (SBA) categories of Small 

Disadvantaged Business, Women-Owned Small Business, and Veteran-Owned Small Business as 

defined within the RFA.

o Example – Total project costs = $1 million -$750,000 in federal funds and $250,000 in match.
Review Process

• Step 1 - Initial Qualification Screening

o Each application is reviewed for completeness, compliance with eligibility and program 

requirements

• Step 2 - Panel Review

o Evaluated by a panel of independent reviewers

o Independent reviewers score based on application criteria

o Scores serve as discussion for awarding and allocating grant funds

• Step 3 - Panel Review

o AMS will conduct a final administrative evaluation of each review panel’s top rankings and 

recommendations.
Evaluation Criteria

• Processing Expansion Project Evaluation Criteria: 

o Alignment and Intent (25pts)

o Technical Merit (15pts) 

o Achievability (15pts) 

o Expertise and Technical Management (15pts) 

o Fiscal Plan, Financial Viability and Resources (10pts) 

o Market Impact and Opportunities (10pts) 

o Community Impact and Support (10pts) 

• Simplified Equipment-Only Evaluation Criteria:

o Alignment and Intent (80pts) 

o Market Impact and Opportunities (20pts) 
National Environmental Policy Act and Other 

Federal Laws and Regulations

• All activities must comply with: 

o National Environmental Policy Act (NEPA)

o Section 106 of the National Historic Preservation Act

o Endangered Species Act (ESA)

o Other Federal, State and Local laws and regulations

• Cost associated with meeting environmental review requirements and permits will 

be eligible for reimbursement as pre-award expenses

• AMS reserves the right to deny an application based on:

o Potential significant environmental impacts

o Cannot obtain proper permitting

o Does not meet NEPA or permitting polices

o Cannot provide documentation by established time frame
Application Information
What You Need to Apply

Required Action Timing to Obtain/Submit

AMS Application Deadline July 19, 2023 - 11:59PM (EST)

Obtain a TIN/EIN (if you do not already have one) Up to 2 weeks

Make sure SAM.gov account is active 7-10 business days

Create your Grants.gov profile and register organization and 

Authorized Representative Up to 2 weeks
Application Documents

Local MCap requires that all application packages include the following: • SF-424 – Application for Federal Assistance 

• SF-424A - Budget Summary 

• Project Abstract Summary 

• Project Narrative Template 

• Evidence of Critical Resources and Infrastructure

Application packages may also be required to include the following documents: 

• Simplified Equipment-Only Projects - Documentation to substantiate the costs of each piece of proposed 

equipment 

• Processing Expansion Projects - Signed Letter(s) Verifying Matching Funds for each match resource listed in the 

application 

• Signed Letter(s) of Support from Producers listed in the application

• Negotiated Indirect Cost Rate Agreement 
Technical Assistance
Available Technical Assistance

• Meat and Poultry Processing Capacity Technical Assistance

o Federal Grant Application Management

o No cost technical assistance

o https://www.ams.usda.gov/mppta

• SAM.gov 

o Federal Service Desk 

o Hours of Operation: Monday-Friday 8 a.m. to 8 p.m. ET

o Phone: 866-606-8220

o https://www.fsd.gov/gsafsd_sp/?id=gsa_landing

• Grants.gov

o Email: support@grants.gov

o Phone: 800-518-4726

o Keep a record of any correspondence, including any ID or case number provided.
Program Contact Information

• Website: https://www.ams.usda.gov/localmcap

• E-mail: LocalMCap@usda.gov
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