03/14/2024
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NEWS RELEASE
FOR IMMEDIATE RELEASE
$15 million available for small meat processors in low interest loans via Department of Agriculture
INDIANAPOLIS (March 14, 2024) — Lt. Gov. Suzanne Crouch, Indiana’s Secretary of Agriculture and Rural Development, alongside the Indiana State Department of Agriculture (ISDA) today announced that small and very small meat processors in need of funding can apply for a loan via ISDA.
“This loan program is a first of its kind for our Indiana State Department of Agriculture and I am excited to support them in this unique opportunity for Hoosier agribusinesses,” said Lt. Gov. Crouch. “We know that more and more Hoosiers are shopping local for meat products and our small meat processors are struggling to keep up with demand. Additionally, some traditional business loans can be hard to secure for this industry, so this low interest loan program will go a long way in ensuring our local meat processors can expand and Hoosier customers get the products they are seeking.”
The Indiana Meat and Poultry Intermediary Lending Program (MPILP) is a $15 million revolving loan program that assists Indiana meat and poultry packers and processors with access to affordable capital for meat expansion projects. This intermediary lending program addresses critical meat expansion needs, which developed and have continued since the start of the COVID-19 pandemic.
The program will support local livestock producers by allowing their market ready livestock to be processed within their communities and help to reduce processing delays. ISDA will be working closely with the Indiana Economic Development Corporation (IEDC), who will serve as the intermediary lender. ISDA is also partnering with the Indiana Small Business Development Centers (ISBDC) who will assist in development of meat expansion projects and loan packages with local meat packers and processors.
“This program is a big step forward in allowing farmers to process their livestock locally,” USDA Rural Development Indiana State Director Dr. Terry Goodin, said. “It shows the importance of investing locally and allows rural Hoosier livestock producers to send their market-ready livestock without delays.”
Meat expansion projects will add local job opportunities and tax revenues for local communities and the State of Indiana.
“We are thrilled to announce this first-ever loan program through the Indiana State Department of Agriculture,” said Don Lamb, ISDA director. “Traditional bank funding for agribusinesses can be challenging, especially for meat processors, so we are excited to work hand in hand with our partners to ensure this needed funding is available to our Hoosier businesses.”
Eligible entities include small meat processors looking to expand or entrepreneurs who would like to open a new facility.
Loan Terms:
• 3% interest rates for scalable loans from $100,000 up to $5 million;
• 2% interest rates for wastewater projects; and
• Up to 15-year loan terms.
ISDA is working closely with the Indiana Bankers Association (IBA) to encourage local bank participation in the meat expansion revolving loans that will result in blended interest rates while preserving local bank relationships.
Eligible expenses may include, but are not limited to:
• Purchase/upgrade of equipment, infrastructure and technology - including installation;
• Purchase or construction of a new facility;
• Start-up costs, working capital, fees or expenses related to meeting federal or state standards;
• Increasing packaging and labeling capabilities; and
• Pollution control and abatement including wastewater and transportation.
The Indiana Meat and Poultry Intermediary Lending Program will open for applications on April 1, 2024. For information regarding the Indiana Meat and Poultry Intermediary Lending Program, please contact David Coates at [email protected].
This funding was from the USDA Rural Development Meat and Poultry Processing Expansion Program with the goal of increasing meat and poultry processing capacity, which in turn increases competition, supports producer income, and strengthens the food supply chain to lower costs for families and create jobs and economic opportunities in rural areas.
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ABOUT ISDA The Indiana State Department of Agriculture (ISDA) reports to Lt. Governor Suzanne Crouch, Indiana’s Secretary of Agriculture and Rural Development. Major responsibilities include advocacy for Indiana agriculture at the local, state and federal level, managing soil conservation programs, promoting economic development and agricultural innovation, serving as a regulatory ombudsman for agricultural businesses, and licensing grain firms throughout the state.
ABOUT USDA RURAL DEVELOPMENT Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety, and health care; and high-speed internet access in rural, Tribal, and high-poverty areas. To learn more, visit http://www.rd.usda.gov/in.
ABOUT MEAT AND POULTRY INTERMEDIARY LENDING PROGRAM The Meat and Poultry Intermediary Lending Program (MPILP) provides grant funding to intermediary lenders who finance the start-up, expansion, or operation of independent meat and poultry processing facilities. The objective of the MPILP is to strengthen the financing capacity for independent meat processors, and to create a more resilient, diverse, and secure U.S. food supply chain.
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Media Contact:
Regan Herr
Phone: 317.552.9281
Email: [email protected]
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