USDA Food Supply Chain Guaranteed Loan Program

Advantages of a USDA Food Supply Chain Loan

  • Rural and Urban areas eligible
  • Up to 40-year term loans available
  • Start-up or expand

Looking to increase capacity or expand your business with a Food Supply Chain Guaranteed Loan?

Lincoln Savings Bank's Food Supply Chain Guaranteed Loan Program helps businesses wanting to expand middle of the food supply chain activities such as aggregation, processing, manufacturing, storage, transportation, wholesale, or distribution of food.

Food Supply Chain Guaranteed Loan Program Benefits

  • Up to $40 million per borrower 
  • Rural and Urban locations eligible 
  • Fixed-interest rate option available 
  • Up to 40-year loan terms 
  • No USDA initial guarantee or annual renewal fees 
  • Refinancing limited to less than 50% of total loan amount 

Who can apply for the Food Supply Chain Guaranteed Loan Program?

Any business involved in:

  • Food aggregation, processing, or storage
  • Manufacturing of food
  • Wholesaling of food
  • Distribution or transportation of food

How can Food Supply Chain Guaranteed Loan Program funds be used?

Funds can be used for:

  • Land & Buildings – convert, enlarge, repair, modernize or develop
  • Machinery & Equipment – purchase and installation 
  • Leased Facilities - building or equipping facilities for lease to public or private enterprises
  • Working Capital – increase operating liquidity

What projects are a good fit?

  • Minimum project size of $10 million
  • Minimum loan amount of $7.5 million

USDA Lending Team

Brett Zahner

Brett Zahner

Business Development Manager
(515) 452-0715
Des Moines, IA
View more about Brett Zahner
John Thomas

John Thomas

SBA Commercial Lender
(319) 874-4238
Waterloo, IA
View more about John Thomas
Mike Olson

Mike Olson

Vice President | Commercial Lender
(641) 236-3121
Grinnell, IA
View more about Mike Olson

Frequently Asked Questions

The purpose of the program is to facilitate financing for the expansion of activities in the food supply chain to increase incapacity and help create a more resilient, diverse, and secure U.S. food supply chain.

Aggregation, processing, manufacturing, storage, transportation, wholesaling, and distribution.

Yes, projects can be located in urban and rural areas.

Loans up to $40 million per borrower, with fixed interest rates and up to a 40 year repayment term, with no USDA fees which results in lower payments that improve the businesses’ cash flow.

  • Existing business needs either a minimum of 10% balance sheet equity or 10% or more borrower investment as a percent of total eligible project cost. New businesses needs 20–25% balance sheet equity or borrower investment as a percent of total eligible project cost , depending on construction financing requirements.
  • Discounted collateral value must at least equal proposed loan amount. 
  • Unsecured guarantees for the full term of the guaranteed loan and at least equal to the guarantor’s percent interest or membership in the borrower times the guaranteed loan amount are required from any person or entity owning a 20-opercent or greater interest in the borrower.   

Great news! We have a team of dedicated USDA Lending experts ready to help you. Simply call 1-833-596-0001 or fill out this contact form

Lincoln Savings Bank is a full-service Central and Northeast Iowa bank dedicated to local customers and communities since 1902.