Meat & Poultry Processing Loans are established under the USDA Meat and Poultry Intermediary Lending Program guidelines. The purpose of the Center for Rural Affairs’ Meat & Poultry Processing Loan Fund is to strengthen and expand small and medium sized primary and secondary meat processing infrastructure.
Eligibility and limitations
Meat & Poultry Processing Loans are available to primary (slaughter) and secondary (cut, pack, value-added) meat processors. 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 at cfra.org/small-business-loans.
Loans are available in the state of Nebraska. Loans may be available outside of Nebraska if adequate funds remain available.
Use of Funds
Meat & Poultry Processing 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 and fees
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. As of August 2023, rates are anticipated to be between 5% and 7%.
In addition, Meat & Poultry Processing Loans may be charged a closing fee between 1% and 3% of the loan amount depending on loan size, loan complexity, and credit risk. There is no penalty for prepayment.
Terms
Amortization periods will be from 1 to 20 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 20 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 and participations
MAPP loans may range from $50,000 to $5 million. Participation loans with other lenders are encouraged, and may be required for larger projects.
Owner equity
In general, we require that an owner has made in the past or will make a financial investment in their business equal to a minimum of 10% to 20% of the requested loan amount. For start ups, this will be a cash investment. For existing business, this may include past investments or accumulated operating equity.
Collateral requirements
Meat & Poultry Processing 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 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 profit and loss statement
- 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
- Environmental review, if required by USDA and by project
Interested borrowers can contact Meg Jackson at 402.309.9096 or megj@cfra.org. Or start by completing our initial intake form at this link or scroll down to fill it out.
