The Strengthening Processing for U.S. Ranchers, or SPUR, Guaranteed Loan Program aims to encourage more processors across the country. Undersecretary of Rural Development Glen Smith gives more details on the initiative.
“It’s in the form of guaranteed loans, up to 90 percent guarantee. That means those processors, it can be for new facilities, it can be for new equipment, it can be for expansion, but it’s to offer alternatives to American farmers, ranchers, and fishermen. They’ll work with the local banks, local financial institutions. As far as the actual terms of the loan, the loan can go up to $175 million, but with that 90 percent guarantee, that financial institution should be able to offer some decent preferential rates,” described Smith.
“Term is also negotiable. That’s going to run, depending on if you’re looking at equipment, a lot of times that’s 15, 20-year loan, depending on the life of the equipment. If you’re looking at a new facility, it can go up to 40 years,” Smith added.
Audio Reporting by Elizabeth Sanders for Southeast AgNet.