Skinned animals hanging in a meat locker/cooler space
Meat & Poultry Processing Loans
Loans available from $50,000 to $5 million

Meat & Poultry Processing Loans

Meat & Poultry Processing Loans are established under the USDA Meat and Poultry Intermediary Relending Program (MPILP) guidelines. The purpose of the MPILP Loan Fund is to strengthen and expand small and medium size primary and secondary meat processing infrastructure. 

Eligibility and limitations

MPILP loans are available to primary (slaughter) and secondary (cut, pack, value added) meat processors. Primary processors must either be USDA inspected or plan to seek USDA inspection, to be eligible. 

Custom exempt facilities are eligible for our small business loans available here.

Loans are available in the state of Nebraska. Loans may be available outside of Nebraska if adequate funds remain available. 

Use of Funds 

MPILP loans will support the following loan purposes: 

  • Expansion of existing business 
  • Start-up of new business
  • Real estate purchase
  • New construction
  • Facilities update or expansion
  • Equipment purchase
  • Energy efficiency upgrades to facilities and equipment 
  • Purchase of an existing business 
  • Working capital 

Rates & fees

Per MPILP guidelines, loans will have a rate that is equal to or less than what a particular project may qualify for elsewhere when considering loan risk, loan size, and related factors. 

In addition, MPILP loans will be charged a closing fee between 1% and 3% of the loan amount depending on loan size, loan complexity, and credit risk. 

Participations

Participation loans with bank lenders are allowed and encouraged, especially for larger projects. 

Terms 

Amortization periods for the MPILP Loan Fund will be from 1 year to 30 years based on the use of funds, with working capital or construction loans being available on terms from 1 to 3 years, equipment or facility upgrades on terms of 3 to 15 years, and construction or real estate on terms of 10 to 30 years. In general, terms will match the useful life of the business asset being financed. Longer term loans may utilize periodic balloon payments with option to refinance.  

Loan limits 

MPILP loans are expected to range from $50,000 to $5 million. 

Collateral requirements

MPILP loans are collateralized by business or personal assets. Applicants should be willing to provide collateral, but applicants who do not have adequate collateral to pledge will still be considered. Strong collateral will not be sufficient to justify loan approval if repayment capacity cannot be established and documented.

Underwriting process 

Loans will be underwritten based on historic and projected cash flows with demonstrated ability to repay being the primary underwriting consideration. All loans require concurrence from USDA on the underwriting recommendation. 

Required documents

A partial list of required documents appears below. Each loan is unique, and additional documents may be required based on the circumstances of the loan. 

  • Business financials statements
  • Year to date P&L
  • Current business balance sheet 
  • Business tax returns 
  • Proof of business ownership
  • Trade name registration, if applicable
  • Schedule of sources and uses 
  • Proof of personal equity injection 
  • Business plan 
  • Business bank statements 
  • Personal financial statement
  • Personal tax returns

Interested borrowers can contact Wyatt Fraas at 402.254.6893 or wyattf@cfra.org. Or start by completing our initial intake form at this link or scroll down to fill it out.

Is this loan for you?

Fill out our intake form and we will be in contact.