Strengthening Processing for US Ranchers Guaranteed Loan Program (SPUR)

The SPUR program provides a 90 percent loan guarantee to commercial lenders, enabling them to offer financing to eligible borrowers. These loans support a wide range of activities aimed at expanding, improving, and diversifying the processing capacity for American meat, poultry, and seafood.

The primary purpose of SPUR is to support the American Meat, Poultry, and Seafood Processing Industries by increasing processing capacity and promoting more competition in the sector, which is particularly vulnerable to disruption, consolidation, and concentration. SPUR funds will help the American protein processing industries diversify the Meat, Poultry, and Seafood supply chains and open local market opportunities.

Eligible uses include, but are not limited to:

• Establish, reopen, retrofit, expand, or improve a processing facility engaged in the processing of meat, poultry, or seafood for commercial markets or toll process

• Purchase and development of land, buildings, and infrastructure for commercial or industrial use

• Purchase and installation of machinery and equipment, necessary improvements, upgrades, renovations, or retrofits to an existing facility

• Purchasing manufacturing systems, information technology systems, and commercially available new technologies that promote worker safety or food safety

• Refinance debt to create cash flow and create jobs

• Individuals or entities engaged, or proposing to engage, in an eligible meat, poultry, or seafood processing business. This includes:

• For- or nonprofit businesses

• Cooperatives

• Indian Tribes as described in 25 U.S.C. 5304(e)

• State and local government organizations (public bodies)

• All applicants must operate under a USDA FSIS grant of inspection, Cooperative Interstate Shipment Program inspection, or an equivalent state inspection program.

• Businesses must be domestically owned, and a majority of owners must be U.S. citizens.

• All urban and rural areas are eligible. There are no geographic restrictions. Processing facilities must be located and operated in the U.S.

• Facilities exempt from Federal inspection in accordance with 9 CFR 303.1(a), specifically Federal Meat Inspection Act custom-exempt facilities may be eligible. These facilities may apply as a new or expanded business seeking to expand their operations to obtain a Federal or equivalent seal of inspection.

• Who is not eligible? Any business (or related business) that has a market share as large as, or larger than, the company with the fourth-largest share of the market.

• Who is not eligible? Entities or individuals having ownership or controlling interests who are nationals of foreign adversary countries, as provided in 15 CFR 791.4.

• Who is not eligible? Ineligible entities referenced in 7 CFR 5001.127.

• The maximum loan amount is $175 million.

• The percentage of guarantee will be 90 percent.

• Interest rates, which can be fixed or variable, are negotiated between the lender and borrower.

• Interest rates are negotiated between the lender and borrower, subject to Agency review. They may be fixed, or variable, and variable interest rates may not be adjusted more often than quarterly.

• SPUR loans may allow up to a two-year deferral of principal and interest payments.

• Loan terms cannot exceed 40 years.

• Borrowers must demonstrate loan funds will remain in the U.S., and the facility being financed will create new or save existing jobs for U.S. residents.

• The lender must hold a minimum of 10 percent of the total loan amount.

• The loan guarantee fee, annual guarantee retention fee, and fee for the issuance of the Loan Note Guarantee prior to completion of construction will correspond to the fees in effect for the Business & Industry (B&I) OneRD program.

Interested borrowers should work directly with lenders.

Lenders can apply year-round.

Contact your local Rural Development office to get started.

To apply for this program, lenders should follow the instructions at: OneRD Guarantee

Please speak to your local program specialist before attempting to fill out any forms or applications. This will save you time in completing your application.

Applications will be accepted until funds are exhausted. Applications will only be accepted electronically.

A feasibility study of the proposed project, by a qualified consultant, is required.

USDA AMS offers no-cost technical assistance to applicants to help prepare guaranteed loan applications through its Meat and Poultry Processing Capacity – Technical Assistance Program (MPPTA).

• SPUR Fact Sheet

• SPUR FAQs for lenders and borrowers

• FY 2027 Notice of Funding Opportunity

• Federal Register Notice

• OneRD Guarantee

• Meat and Poultry Processing Capacity Technical Assistance Program