WASHINGTON, D.C. — The U.S. Small Business Administration has approved 19 loans totaling more than $30 million through its enhanced Grocery Guarantee program, an initiative the agency says is intended to increase financing for businesses involved in the nation’s food supply chain.
The approvals, completed during the program’s first month, provide an early measure of lender participation in a federal effort designed to expand capital access for food producers, processors, distributors, storage operators, and grocery retailers.
The program operates through the SBA’s International Trade Loan program and offers lenders a 90% federal loan guarantee for qualifying businesses. The enhanced guarantee exceeds the standard 75% guarantee available under the SBA’s flagship 7(a) loan program.
According to the SBA, the higher guarantee is intended to encourage lending for investments that expand food production, processing capacity, distribution networks, transportation, and storage infrastructure.
“After years of Biden-era price pressures and burdensome regulation that made it harder for farmers, ranchers, and rural small businesses to grow, the Trump Administration is advancing policies that expand production and help make America more affordable,” SBA Administrator Kelly Loeffler said.
Loeffler added that the early volume of approved loans indicates lenders are directing capital toward businesses involved in the domestic food supply chain.
Eligible borrowers include a broad range of agricultural and food-related businesses, including grain, vegetable, fruit, livestock, poultry and aquaculture operations, as well as grocery wholesalers, supermarkets, refrigerated warehouses, transportation companies, and agricultural supply businesses.
The SBA said the program is intended to support investment across key segments of the food economy, with the agency arguing that increased production and distribution capacity could help strengthen food supply chains and improve affordability for consumers.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.