The Sugar Storage Facility Loan (SSFL) Program, administered by the Farm Service Agency (FSA), offers financial assistance to eligible sugar producers and processors to build, upgrade, or purchase storage and handling facilities and equipment. These loans help improve the storage capacity, handling efficiency, and overall quality of sugar products. The program supports both portable and permanently affixed structures and equipment, including storage and handling trucks.
Program Features:
- Eligibility: Eligible applicants include sugar producers and processors. They must demonstrate a need for improved storage facilities and have the ability to repay the loan.
- Loan Purposes:
- Acquire, construct, or upgrade new or used, portable or permanently affixed, on-farm storage and handling facilities.
- Acquire new or used storage and handling trucks.
- Acquire portable or permanently affixed storage and handling equipment.
- Loan Amounts: Up to $500,000 per loan with a minimum down payment of 15%. Loan terms are up to 12 years, depending on the loan amount. A microloan option is available for loans up to $50,000 with a lower down payment and reduced documentation requirements.
- Interest Rates: Fixed interest rates determined by the FSA, generally lower than conventional loan rates.
- Repayment Terms: Up to 12 years, with shorter terms available for microloans.
Additional Benefits:
- Improved Storage and Handling: Enables producers and processors to enhance their storage and handling facilities, ensuring better product quality.
- Affordable Financing: Provides low-interest loans with flexible terms, making it feasible for producers to invest in necessary infrastructure.
- Support for Small and New Producers: The microloan option offers lower down payments and reduced documentation, making it easier for small and beginning producers to access financing.
How to Enroll:To apply for the Sugar Storage Facility Loan, producers and processors must complete and submit an application to their local FSA office. The application process includes providing detailed information about the proposed facility, cost estimates, and proof of the ability to repay the loan. An environmental evaluation is also required before approval.
Eligibility:Eligible applicants include sugar producers and processors who demonstrate a need for improved storage facilities and the ability to repay the loan. Applicants must provide detailed plans and cost estimates for the construction or renovation of storage facilities.
Eligible Commodities:
- Corn, grain sorghum, wheat, oats, or barley harvested as other than whole grain
- Other grains (triticale, speltz, and buckwheat)
- Pulse crops (lentils, chickpeas, and dry peas)
- Hay
- Honey
- Renewable biomass
- Fruits (including nuts) and vegetables - cold storage facilities
- Floriculture
- Hops
- Malted small grains
- Maple sap and maple syrup
- Milk, cheese, butter, yogurt
- Eggs
- Meat/poultry (unprocessed)
- Rye
- Aquaculture
- Hemp
- Seed cotton
- Wool
Eligible Facilities, Equipment, and Upgrades:
- Conventional cribs or bins
- Oxygen-limiting structures
- Flat-type storage structures
- Electrical and handling equipment
- Safety equipment
- Equipment for quality improvement and monitoring
- Concrete foundations, aprons, pits, and pads
- Renovation of existing facilities
- Grain handling and drying equipment
- Storage and handling trucks
Environmental Evaluation Requirements:All loan requests are subject to an environmental evaluation and must be approved by the local FSA state or county committee before any site preparation or construction begins.
Where to File the Application:Loan applications should be filed in the administrative FSA county office that maintains the farm’s records.
