WASHINGTON, D.C. — Small businesses across the food supply chain will gain expanded access to federally backed loans starting May 1 under a new program aimed at increasing food production and reducing grocery prices.
What This Means for You
- Farmers and food businesses may access larger, lower-risk loans
- Increased domestic food production could help stabilize prices
- More financing options may expand supply and distribution networks
The U.S. Small Business Administration announced an enhanced “Grocery Guarantee” within its International Trade Loan Program, which will offer loans backed by a 90% federal guarantee — meaning the government agrees to cover most of the lender’s risk if a borrower defaults.
How the Loan Program Works
The International Trade Loan Program provides long-term financing to small businesses, and the increased guarantee is designed to encourage lenders to approve more loans by reducing financial risk.
Under the standard SBA 7(a) loan program, the federal guarantee typically covers about 75% of a loan. The new Grocery Guarantee raises that level to 90% for eligible businesses tied to the food supply chain.
Officials said the change is intended to expand lending for projects involving food production, processing, transportation, and storage.
Who Qualifies
Starting May 1, the expanded program will apply to a wide range of industries, including farming, livestock production, fishing, food wholesalers, grocery retailers, trucking companies, and refrigerated storage providers.
The eligibility categories are based on federal industry classifications that define sectors involved in producing and distributing food.
Goal: Increase Supply, Reduce Costs
SBA Administrator Kelly Loeffler said the initiative is designed to increase domestic food supply by helping businesses invest in infrastructure and operations.
“By fueling domestic capacity, we will continue to tackle the record-high prices … and fill America’s grocery stores with affordable, nutritious, homegrown food,” Loeffler said.
Officials said increasing production and improving supply chains could help ease price pressures by making more food available in the market.
Broader Investment Strategy
The program builds on broader federal efforts to support agriculture and rural economies by expanding access to capital.
In 2025, the SBA reported deploying more than $7 billion in funding to rural communities as part of a larger $45 billion lending portfolio supporting small businesses nationwide.
Next Steps
Small businesses and lenders interested in the program can contact SBA finance specialists for guidance on eligibility and application requirements.
Officials said the expanded loan program can also be combined with other SBA financing tools to support working capital and business growth.
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