Meat and Poultry Intermediary Lending Program: Things You Should Know
Our team at August Brown has noticed prospective clients often ask the same or similar questions about MPILP. Here is an article to help clarify any questions that you may have about this program.
Intermediary lenders in the Meat and Poultry Intermediary Lending Program (MPILP) receive grant funds to finance and expand meat and poultry processing businesses. MPILP aims to strengthen the US food supply chain by assisting companies with the start-up, expansion, and operation of slaughterhouses and other meat and poultry processing facilities.
You may have many other questions about it, such as MPILP eligibility, how to apply for it, what are the points that make it different from Food Supply Chain Guaranteed Loan Program, and many more. This article has all your answers.
About MPILP Opportunity
USDA provides grant funding to Intermediary lenders who finance people operating within the meat and poultry industry in the MPILP program. Also, the program grants those lenders planning to finance the start-up, expansion, or operation of slaughter or other meat and poultry processing.
MPILP aims to strengthen independent meat processors’ financing capacity. By investing in small and medium-sized processors, the government is strengthening local and regional food systems, reducing barriers to processing, creating jobs, and lowering consumers’ meat and poultry costs.
What categories of intermediaries are eligible to apply for this program?
Those who fund — or propose to finance — the start-up, expansion, or operation of meat and poultry processing in private nonprofit businesses, public agencies, Tribes, and cooperatives are eligible to apply.
Who are the potential recipients?
As the final beneficiary in a loan, meat or poultry processors can either apply directly or through partnerships with intermediary lenders. This can be done either directly or through partnerships with other entities.
The ultimate recipients must:
- Be a company involved in, or planning to engage in, commercial meat- or poultry-processing operations, either directly or through agreements with other companies.
- Unless specifically exempted, conform to USDA Food Safety and Inspection Service requirements
How Can Funds Be Used?
Funds granted to intermediaries can be spent on expanding and operating meat and poultry processing capacity, such as:
- Buying Land
- Debt Refinancing
- Strengthening Leaseholds
- Constructing a New Building
- Handling Waste Management
- Qualifying Taxable Corporate Bonds
- Upgrading or Growing an Existing Structure
- a Transferrable Cooperative Stock Purchase
- Implementing Pollution Prevention and Control
- Financing Feasibility Analyses for Meat-Processing Plants
- Enhancing Infrastructure or Machinery to Ensure Food Safety
- Creating, Putting in Place, or Updating Machinery and Technology
- Ensuring That Occupational and Other Safety Regulations Are Followed
- Buying Cooperative Shares (By Individual Farmers or Ranchers in a Farmer or Rancher Cooperative)
- Offsetting Start-Up Costs, Working Capital, Fees, and Other Costs Associated with Federal Inspection
- Extending Credit to a Fund That Mainly Invests in Cooperatives (In Accordance with the Provisions of the Program)
What is the maximum grant amount?
A maximum of $15 million can be requested in one cycle, but applicants can request funds up to that amount multiple times. A minimum grant award of $500,000 applies to all grant cycles.
MPILP vs FSC comparison
|For those who want to – or already – finance meat and poultry processors
|To expand access to and financing those who are into strengthening food system infrastructure
|Up to $15 million is available
|Loan guarantees up to $40 million
|For private, nonprofit organizations, public agencies, federally-recognized Tribes, and cooperative lenders.
|For profit and nonprofit lenders, including chartered banks, credit unions, CDFIs, and Farm Credit Institutions.
|Meat and poultry processors are eligible borrowers
|Borrowers must be companies or organizations supporting operations in the food supply chain (aggregation, processing, distribution, etc.).
|Revolving loan funds are created with grants, and intermediary lenders must make use of them within three years.
|Until funds run out, loan guarantees are given to lenders on a project-by-project basis.
How August Brown Can Help You With MPILP?
August Brown has already successfully led the projects under FSC Guaranteed Loan Program. We are in the top-tier agency to help business land loans and grants provided by USDA.
Experienced professionals, therefore, completed August Brown’s high-quality feasibility study reports and underwriting wherever required. August Brown’s goal is to provide high-quality services in the shortest amount of time possible, so you can confidently move forward.
Contact our experts to learn how you can land an MPILP fund for your project.
About August Brown, LLC – Founded in 2011 by Dr. Gordon Nameni, August Brown is a boutique technology-focused management consulting and advisory firm with a specialization in feasibility studies. The August Brown team is comprised of passionate individuals from a diverse set of backgrounds (engineers, CPAs, marketers, and analysts). August Brown provides feasibility studies that support USDA loans, M&A transactions, and financial decisions. The company delivers deep insights with analytical rigor that drive growth strategies, market positioning, and continuous improvement.
Content inspiration references: