$15M in loans available to small meat processors
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Small meat processors in Indiana can apply for low-interest loans through a program meant to assist with capital expansion projects.
The Indiana State Department of Agriculture has $15 million worth of loans in the Indiana Meat and Poultry Intermediary Lending Program to hand out.
The money stems from the U.S. Department of Agriculture’s Rural Development Meat and Poultry Processing Expansion Program, which seeks to increase meat and poultry processing capacity.
“We know that more and more Hoosiers are shopping local for meat products and our small meat processors are struggling to keep up with demand,” Lt. Gov. Suzanne Crouch said in a news release. “Additionally, some traditional business loans can be hard to secure for this industry, so this low interest loan program will go a long way in ensuring our local meat processors can expand and Hoosier customers get the products they are seeking.”
The program was created to support local livestock producers and reduce processing delays. The state said in the release it can create jobs and add tax revenues for local communities.
Loan terms are 3% interest rates for scalable loans from $100,000 up to $5 million; 2% interest rates for wastewater projects; and up to 15-year loan terms.
Eligible expenses include:
- Purchase/upgrade of equipment, infrastructure and technology
- Purchase or construction of a new facility
- Start-up costs, working capital, fees or expenses related to meeting federal or state standards
- Increasing packaging and labeling capabilities
- Pollution control and abatement including wastewater and transportation
The Indiana Economic Development Corp. will act as an intermediary lender, and the Indiana Small Business Development Centers will also assist with project development and loan packages. The Indiana Bankers Association is also involved and is encouraging local banks to participate.
Applications will open for the program April 1.