Statewide Iowa (RI) — The regional administrator of the Small Business Administration says a new agency initiative is focused on boosting food production in the United States, particularly meat processing.
Brad Zaun, a former member of the Iowa Senate, is the SBA’s administrator for Iowa, Missouri, Kansas, and Nebraska.
To encourage banks to make loans to food processors and related businesses, the SBA will be guaranteeing a larger portion of one of these loans if the business defaults.
A major regional beef processing plant in Lexington, Nebraska, closed early this year, shutting down nearly five percent of daily cattle processing in the United States.
Zaun has been meeting with businesses in the region to tout the new SBA loan guarantee in hopes of expanding processing capacity.
The program is not just for food processors but for businesses all along the food chain.
Zaun says that means grocery stores could be eligible for the program.
Businesses may begin applying for these loans May 1st.
Last year, the Small Business Administration backed loans to 85,000 U.S. businesses.
KIWA Staff Photo
