Indiana Meat and Poultry Intermediary Lending Program (MPILP)

Indiana State Department of Agriculture (ISDA)

The Indiana Meat and Poultry Intermediary Lending Program (MPILP) is a $15 million revolving loan program that assists Indiana meat and poultry packers and processors with access to affordable capital for meat expansion projects. This intermediary lending program addresses critical meat expansion needs, which developed and have continued since the start of the COVID-19 pandemic. The program will support local livestock producers by allowing their market ready livestock to be processed within their communities by reducing processing booking delays. ISDA will be working closely with the Indiana Economic Development Corporation (IEDC), who will serve as the intermediary lender. ISDA is also partnering with the Indiana Small Business Development Centers (ISBDC) who will assist in development of meat expansion projects and loan packages with local meat packers and processors.

Download the MPILP Grant Program One-Pager HERE.

TIMELINE:

Pre- applications will open April 1, 2024 at 8:00 a.m. ET.

Click here for the pre-application. 

This program has a rolling application timeline which means applications can be submitted at any time.

WHO IS ELIGIBLE:

Indiana small and very small meat and poultry packers and processors that are not members of “the big four.”  For example, in beef processing, “the big four” include Cargill, Tyson Foods, JBS SA and National Beef Packing.

ELIGIBLE EXPENSES MAY INCLUDE, BUT ARE NOT LIMITED TO:

Indiana Meat and Poultry Intermediary Lending Program MPILP eligible uses include:

• Expansion of existing business
• Start-up of new business
• Real estate purchase
• New construction
• Facilities update or expansion
• Equipment purchase
• Energy efficiency upgrades to facilities and equipment
• Purchase of an existing business
• Working capital
• Pollution control such as wastewater management

ELIGIBILITY:

Meat & Poultry Processing Loans are available to primary (slaughter) and secondary (cut, pack, value-added) meat processors. Processors must either be federal USDA inspected or state inspected by the Board of Animal Health BOAH to be eligible. Loans are available only to small and very small meat and poultry processors in the state of Indiana.

LOCAL BANK PARTICIPATION:

Indiana MPILP funds are available through local bank participation loans.  Our MPILP team will work directly with you and your local banks to determine the structure of the local bank participation loan.

RATES & FEES:

Current Indiana MPILP fund rates are 3% for building and equipment, 2% for wastewater projects.  The local bank rates will be current market loan rates.  A local bank participation loan where MPILP funds are used will end up with a “blended” interest rate which will assist your business by lowering your overall interest rate.  Loan fees will be the standard closing fees used by the local banks.

ISDA is working closely with the Indiana Banking Association (IBA) to encourage local bank participation on the meat expansion revolving loans that will result in blended interest rates while preserving local bank relationships.

TERMS:

The amortization period for MPILP funds can be from 1 to 15 years based on the term requirements from the local bank.  In general, terms will match the useful life of the business asset being financed. Longer term loans may utilize periodic balloon payments with option to refinance based on the local bank eligibility.

LOAN LIMITS:

Indiana MPILP funds may range from $100,000 to $5 million.

OWNER EQUITY:

In general, MPILP funds will have the same requirements that an owner has made to the local bank.  Owners must make a financial investment of 10% to 20% of the requested loan amount.

COLLATERAL REQUIREMENTS:

MPILP loans through local bank participation are typically collateralized by business and/or personal assets.

UNDERWRITING PROCESS:

Loans will be underwritten based on historic and projected cash flows with demonstrated ability to repay being the primary underwriting consideration. All MPILP loans require concurrence from USDA on the underwriting recommendation.  The Indiana MPILP team will lead the loan concurrence process with the USDA.

REQUIRED DOCUMENTS:

A partial list of required documents appears below. Each loan is unique, and additional documents may be required based on the circumstances of the loan.

• Business financials statements
• Year-to-date profit and loss statement
• Current business balance sheet
• Business tax returns
• Proof of business ownership
• Trade name registration, if applicable
• Schedule of sources and uses
• Proof of personal equity injection
• Business plan
• Business bank statements
• Personal financial statement
• Personal tax returns
• Environmental review, if required by USDA and by project

MPILP SUPPORT:

The Indiana MPILP Team will help advise you throughout the loan development and term, providing support as needed.  We will refer you to a regional Indiana Small Business Development Center ISBDC, https://isbdc.org/ to assist in business plan development and important financial planning. Access to the business professionals through the Indiana Small Business Development Centers ISBDC is a free service.

FOR MORE INFORMATION:

For information regarding the Indiana Meat and Poultry Intermediary Lending Program, please contact our Indiana MPILP team at mpilp@isda.in.gov or (317) 954-4073.