Sec. 6503. Food supply chain guaranteed loan and grant program
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In this section: The term commercial food product means a product derived from domestically grown food in regular production that is routinely sold in significant quantities to the general public or industry. The term eligible entity means— a cooperative organization; a for-profit entity; a Tribal entity; a public body; an individual; and a nonprofit organization. The term Tribal entity means— an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 )); any other Tribe (as determined by the Secretary); and a Tribal organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 )).
The term Tribal entity includes an entity or a corporation that— is wholly or majority owned by one or more Tribal entities described in subparagraph
(A)or one or more members thereof; and provides services or programs consistent with the purposes of the program under this section. The Secretary shall guarantee loans and make grants to eligible entities to support the commencement or expansion of projects in the United States to increase the capacity of the food supply chain in the United States to aggregate, process, manufacture, store, transport, wholesale, or distribute domestically grown food for commercial food products. To be eligible for a loan guarantee or grant under this section, an eligible entity shall be engaged in or propose to engage in aggregating, processing, manufacturing, storing, transporting, wholesaling, or distributing domestically grown food for a commercial food product project— directly; or through a contractual, lease, or service agreement with another entity. To be eligible for a loan guarantee or grant under this section— an eligible entity engaged in or proposing to engage in the processing of meat, poultry, processed egg products, or fish of the order Siluriformes shall comply with the requirements of the Food Safety and Inspection Service; an eligible entity engaged in or proposing to engage in the processing of any food or food ingredient not described in subparagraph
(A)shall comply with the requirements of the Food and Drug Administration; and an eligible entity engaged in or proposing to engage in beef, pork, chicken, or turkey processing, including an affiliate of such an eligible entity, shall not hold a market share greater than or equal to the entity that holds the fourth-largest share of the market for the species addressed in the loan guarantee or grant award. The Secretary shall not limit the eligibility of an eligible entity for a loan guarantee or grant under this section based on the availability of credit from any other source. To be eligible for a loan guarantee or grant under this section, an eligible entity shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary determines to be appropriate. An application submitted under paragraph
(1)shall demonstrate that the loan or grant funds will be used in the United States to carry out a project described in subsection (b). An application submitted under paragraph
(1)shall include a feasibility study that meets criteria established by the Secretary. The Secretary may not approve an application submitted under paragraph
(1)unless the Secretary determines that the project described in the application is technically and economically feasible, based on the feasibility study described in subparagraph (A). An eligible entity may apply for both a loan guarantee and a grant under this section using the same application. A loan guaranteed under this section may be used by the eligible entity— to purchase or develop real property; to expand, renovate, construct, or otherwise improve leased or owned property; to purchase machinery or equipment; for— debt refinancing; interim financing; the purchase of membership into the Farm Credit System; the purchase of cooperative stock or taxable corporate bonds; the financing of working capital; or to cover interest or fees; to conduct a feasibility study under subsection (d)(3)(A); for education and training facilities or equipment; or for pollution control or abatement. The principal amount of a loan guaranteed under this section may not exceed $80,000,000. A grant made under this section may be used by the eligible entity receiving the grant for— technical assistance; employee training and certification; costs of an environmental assessment; or food safety certification and training. The amount of a grant made under this section may not exceed $500,000. Of the amount made available to carry out this section for each fiscal year, the Secretary shall reserve not less than 10 percent to make grants under this section. If amounts reserved under subparagraph
(A)are not obligated by September 30 of the fiscal year for which the amounts are reserved, the amounts shall be available for other purposes authorized under this section. In guaranteeing loans and making grants under this section, when the amount available to carry out this section is less than the total of the amounts requested by applications under this section that are eligible for approval, the Secretary shall give preference to applications for projects that— would create jobs in economically distressed communities, as determined by the Secretary; are submitted by eligible entities that are small food processors (as determined by the Secretary) and are small business concerns (within the meaning of section 3 of the Small Business Act ( 15 U.S.C. 632 )); would support local or regional foods; or would help to create a more resilient, diverse, and secure United States food supply chain, as determined by the Secretary. The Secretary shall use the amounts made available to carry out this section to supplement, and not supplant, funds provided under other Federal law or State or local law. As a condition of receiving a loan guarantee or grant under this section, an eligible entity shall ensure that all laborers and mechanics employed by contractors or subcontractors in the performance of construction work financed in whole or in part by the loan guarantee or grant shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141 through 3144, 3146, and 3147 of title 40, United States Code. The Secretary of Labor shall have, with respect to the labor standards described in paragraph (1), the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App) and section 3145 of title 40, United States Code. There is appropriated, out of amounts in the Treasury not otherwise appropriated, $30,000,000 for fiscal year 2025 and each fiscal year thereafter to carry out this section, to remain available until expended. There is authorized to be appropriated to the Secretary to carry out this section not more than $30,000,000 for each of fiscal years 2025 through 2029, to remain available until expended. Of the amount made available to carry out this section for each fiscal year, the Secretary may use not more than 5 percent for administrative purposes.
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- 64 Stat. 1267
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Sec. 6503
Food supply chain guaranteed loan and grant program
Stat.64 Stat. 1267
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