Feb 08, 2022
The U.S. Department of Agriculture (USDA) Secretary, Tom Vilsack recently announced that the USDA is deploying $100 million under the new Food Supply Chain Guaranteed Loan Program to make nearly $1 billion available in loan guarantees. The objectives are to support new investments in infrastructure for food aggregation, processing, manufacturing, storage, transportation, wholesaling, and distribution, and to also increase capacity and create a more resilient, diverse, and secure U.S. food supply chain.
What is the Food Supply Chain Guaranteed Loan Program?
The Food Supply Chain Guaranteed Loan Program is a part of the USDA’s Build Back Better initiative to strengthen critical supply chains and our food system. This program guarantees loans of up to $40 million for qualified lenders to finance food system projects, specifically for the start-up or expansion of activities in the middle of the food supply chain.
Eligible borrowers must be directly engaged in the middle of the food supply chain, specifically the aggregation, processing, manufacturing, storing, transporting, wholesaling, or distribution of food. Examples of the types of entities that may qualify for the program include meat processors and food hubs. Lenders may provide the loans to eligible cooperatives, corporations, for-profits, nonprofits, Tribal communities, public bodies, and people in rural and urban areas.
How can funds be used?
Funds are available on a first-come, first-serve basis and may be used to:
- start-up or expand food supply chain activities such as aggregating, processing, manufacturing, storing, transporting, wholesaling, or distributing food.
- address supply chain bottlenecks.
- increase capacity and help create a more resilient, diverse, and secure U.S. food supply chain.
How do I apply?
The USDA is accepting electronic applications from lenders through the Food Supply Chain Online Application System until funds are expended. Paper applications will not be accepted.
To access the online application system, lenders must submit a request to email@example.com.
USDA Rural Development encourages applications for projects that advance the recovery from the COVID-19 pandemic, promote equitable access to USDA programs and services, and reduce the impacts of climate change on rural communities. For more information, visit www.rd.usda.gov/priority-points.
Nov 02, 2020
Main Street Lending Program
On Friday, October 30, the Federal Reserve Board adjusted the terms of the Main Street Lending Program to better support smaller businesses that employ millions of workers and are facing continued revenue shortfalls as a result of the pandemic. The program supports lending to small and medium-sized for-profit businesses and nonprofit organizations that were in sound financial condition before the COVID-19 pandemic but lack access to credit on reasonable terms.
Yet so far the program has made just 400 loans for a total of $3.7 billion — far below the $600 billion in total funding that the Fed has said it is willing to lend. In an effort to boost participation in the program, the Federal Reserve Board made the following changes to ease lending stipulations along with waiving fees.
- Minimum loan amount lowered – The minimum loan size for three Main Street facilities available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000 and the fees have been adjusted to encourage the provision of these smaller loans.
- Prior loan assistance rules modified – The Fed also tweaked rules about the degree to which prior loan help from the federal government (PPP loans) can be counted in a company’s application, with an eye toward trying to make the Main Street lending program more accessible to small and midsized businesses.
Additional detail about this program can be found at https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm
For assistance with considering your options under the Main Street Lending Program or with finding a participating lender, contact your WVC advisor.
Economic Injury Disaster Loan (EIDL) – Request a Loan or Increase to Your Existing Loan
When the COVID-19 related EIDL loans were announced, they were capped at $2 million. The SBA was quickly inundated with EIDL applications and capped the loan amount to $150,000. Additionally, the SBA stopped accepted applications for all but agricultural businesses for several months.
EIDL applications were re-opened in June 2020.
Additionally, since EIDL loans are no longer capped at $150,000, you may request an increase to your existing COVID-19 EIDL. To request an increase to your EIDL, log into your EIDL account or send an email that states your need for an increase to the loan amount to firstname.lastname@example.org with the word “INCREASE” in the subject line. Include any additional information that may assist the SBA in considering an increase in your application such as:
- Your most recent Federal income tax return for your business along with a signed IRS Form 4506-T, and /or
- Updated financials (Gross Revenue, Cost of Goods Sold, cost of operation, or other sources of compensation) submitted on SBA Form 3502, and
- An explanation of how COVID-19 has negatively impacted your business and why the additional funds are necessary.
For additional information on how EIDL loan terms and how the funds can be used, view our WVC Short on the topic.
Oct 26, 2020
On Friday, October 23, Ohio Governor Mike DeWine approved several new programs aimed to provide much-needed relief to small businesses, restaurants/bars, and low-income families negatively impacted by COVID-19. These programs include:
Small Business Relief Grant – This program will designate up to $125 million of funding received by the State of Ohio from the federal CARES Act to provide $10,000 grants to small businesses with no more than 25 employees to help them through the current crisis. The program will be administered by the Ohio Development Services Agency. If you are a small business with no more than 25 employees, you can apply for one of the first-come, first-serve grants starting on November 2, 2020. Businesses can use the grants to pay for various expenses including mortgages, rent, utilities, salaries, health care premiums, business supplies, and other related operational costs. Click here to review the terms & conditions of the program. Ineligible businesses include, but are not limited to nonprofits, private schools, clubs, etc.
The Bar and Restaurant Assistance Fund – This program is designed to assist Ohio’s on-premise liquor permit holders. Governor Mike DeWine has designated $37.5 million of funding received by the State of Ohio from the federal CARES Act to provide $2,500 assistance payments to on-premise liquor permit holders to help them through the financial difficulties experienced during the COVID-19 pandemic. These permit holders have not been able to fully use their liquor permit and it’s had an impact on their business. The program, which will begin accepting applications on November 2, 2020, will be administered by the Ohio Development Services Agency. Click here for more information on how to apply.
Home Relief Grant – Also accepting applications starting November 2, 2020, is the Home Relief Grant Program which will help eligible Ohioans who are behind on rent, mortgage, and water and/or sewer utility bills catch up on past payments back to April 1, 2020, and provide additional assistance through December 30, 2020. Ohioans can apply for assistance through their local Community Action Agency. Click here for more information on how to apply.
As always, we are here to provide assistance. If you have immediate questions or concerns, please reach out to your William Vaughan Company advisor today or call us at 419.891.1040