USDA Announces First Investment Under the Food Supply Chain Guaranteed Loan Program
PANORA, IOWA – Oct. 21, 2022 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that the Department is investing $11.1 million under the Food Supply Chain Guaranteed Loan Program to help Crystal Freeze Dry LLC expand capacity to manufacture freeze-dried egg products and create job opportunities for people living in rural Iowa. The funding is part of the Biden-Harris Administration’s commitment to strengthen critical food supply chain infrastructure to create more thriving communities for the American people.
"The Biden-Harris Administration is investing in ways to create more, new and better market opportunities for farmers and increase access to healthy food options for people across the nation," Vilsack said. “Through the Food Supply Chain Guaranteed Loan Program, USDA has become a stronger partner to small and midsize farmers everywhere by backing private investments to expand processing capacity that will strengthen the food supply chain for the American people. The investment we’re announcing today is the first of many that will help to eliminate supply chain bottle necks and create more resilient, diverse and secure food supply infrastructure right here at home.”
Crystal Freeze Dry LLC, a family-owned dried-egg product manufacturer, will use the funding to expand its business and create jobs for seven people in Guthrie County. Funds also will be used to purchase equipment, refinance debt and support working capital.
The company supplies American troops and sailors with homegrown eggs that require no refrigeration and are not fragile. For example, it recently launched “Egg in a Cup™”, which can be microwaved to make scrambled eggs.
It is making plans to enter markets in Puerto Rico due to local power grid issues. Supplying these products to frontline troops, ships at sea, and areas with unstable electrical grids creates a more resilient, diverse, and secure food supply chain.
The Biden-Harris Administration made these funds available through its historic legislative package, the American Rescue Plan Act. The program is part of the administration’s efforts to address food system challenges dating back decades and further exacerbated by the COVID-19 pandemic.
The Food Supply Chain Guaranteed Loan Program supports essential processing and supply chain infrastructure to help eliminate bottlenecks in the food supply chain, deliver more opportunities and fairer prices for farmers and provide people with greater access to healthier foods.
USDA will announce additional recipients for the Food Supply Chain Guaranteed Loan Program in the coming weeks and months.
In December 2021, USDA announced that it deployed $100 million through the Food Supply Chain Guaranteed Loan Program to make available nearly $1 billion in loan guarantees. The loan guarantees will back private investment in processing and food supply infrastructure that will strengthen the food supply chain for the American people.
Through this program, USDA partners with lenders to guarantee loans to help eligible entities expand meat and poultry processing capacity and finance other food supply chain infrastructure. Lenders provide the loans to eligible cooperatives, corporations, for profits, nonprofits, Tribal communities, public bodies and people in rural and urban areas.
The Biden-Harris Administration made these funds available through its historic legislative package, the American Rescue Plan Act. The program is part of the administration’s efforts to address food system challenges dating back decades and further exacerbated by the COVID-19 pandemic. These efforts are part of USDA’s Build Back Better Initiative, a comprehensive plan to invest $4 billion to strengthen the resiliency of America’s food supply chain while promoting competition.
As co-Chair of the Biden-Harris Administration’s Supply Chain Disruptions Task Force, Secretary Vilsack and USDA have brought together industry, labor and federal partners to address the short-term supply chain disruptions arising from the Administration’s strong economic recovery. This is one of several key steps that USDA is taking to build a more resilient supply chain and better food system and to increase competition in agricultural markets. These steps are pursuant to President Biden’s Executive Order on Promoting Competition in the American Economy and his Executive Order on America’s Supply Chains. This initiative will support key supply chain infrastructure investments to expand and scale existing capacity, as well as support long-term investments in new operations.
Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, promoting competition and fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
USDA is an equal opportunity provider, employer and lender.