Alabama Meat Processing Program (AMPP)

The Alabama Meat Processing Program (AMPP), part of the USDA Meat and Poultry Intermediary Lending Program, is administered by the Alabama Agricultural Development Authority (AADA), which was established in 1980 by the Alabama Legislature to promote agriculture and to finance agricultural businesses in Alabama. AADA's mission for the USDA-AMPP is to boost rural economic development by financing small business owners who are expanding or starting a slaughter or processing facility within Alabama, with the end goal of facilitating the start-up and expansion of small and medium sized slaughter and processing plants. AMPP provides funding to finance the establishment, expansion, or operation of meat and poultry processing facilities. Together with this award, USDA provided $88.6 million to nine nonprofits in seven states.

Small business owners who are expanding or starting a slaughter or processing facility within Alabama; the program targets small and medium sized slaughter and processing plants, positively impacting everyone within the food supply chain from the farmer to the slaughter and processing facility to the consumer.

Rate and term ARE published — in the AMPP Loan Application Packet linked from the program page, not on the page itself. Verbatim: "Loan interest rate is 4%." and "Loan terms are available up to 30 years for real estate and up to 15 years for equipment. The terms available on each request will be determined by AADA considering the request and useful life of the proposed collateral."

Fees: a "Nonrefundable application fee" — "Submit a check payable to 'Alabama Agricultural Development Authority' for $150.00 with your application to cover credit reports" — and at closing, "Borrower must pay a one-time processing fee of ¼ of 1% (.0025) of the loan amount due at the time of loan closing." The "Borrower is responsible for all legal and closing costs associated with the loan."

Underwriting conditions: "Loan covenant requirements are as follows: Minimum Debt Service Coverage of 110%; Debt to Asset Ratio not more than 1:1; Loan to Value will not exceed 80%." Loans must be secured and an appraisal is required; "Principals of the funded entity must furnish personal guarantees"; and hazard and "key man" insurance (if applicable) naming AADA as loss payee is required. Applicants are also asked to name the "Amount of Loan requested," to "describe your preferred schedule of repayment," and to identify the people "authorized to negotiate loan terms and conditions."

Honest-unpublished value: no per-borrower loan ceiling or floor is published anywhere in the program page, the loan packet, or the AADA news releases.

Eligible uses are broad: "Loans can be used to purchase or construct new facilities, expand existing facilities, purchase new equipment, cover start-up costs and hire additional employees." The packet also lists acquisition and development of land, buildings or infrastructure, leasehold improvements, machinery and equipment purchase, debt refinancing, feasibility studies, and pollution control and abatement.

The dollar figures AADA publishes are pool sizes, not per-borrower awards. Alabama's program comes from "a $15 million award from the United States Department of Agriculture (USDA) through the Meat and Poultry Intermediary Lending Program (MPILP) to the AADA," and "funds will be allocated until the $15 million is loaned out or the deadline of March 1, 2026, which ever occurs first." Separately, "together with this award, USDA provided $88.6 million to nine nonprofits in seven states."

The AMPP loan program "operates under the USDA-MPILP Regulations."

Loans are administered by AADA. AMPP loan applications are anticipated to open for a second round of acceptance starting April 15. Applicants complete the AMPP Loan Application and provide supporting documents including a USDA Environmental Checklist and an Existing Debt Summary. Contact the program at mpilp@agi.alabama.gov.