Establishing a meat processing plant entails that you must understand and conform with the many rules and regulations, permitting, construction, and operating costs.
All these components joined together will factor in the cost of starting a meat processing plant business. As such, you should take your time to learn all you can regarding the industry. Don’t forget to contact other meat plant owners, trade groups, regulatory agencies, farmers, and customers.
You need to understand where your supplies (animals, packaging, equipment) will come from, the demographic that will buy your products, as well as what your competition is like.
To accomplish this step, you also need to understand what your facility will look like and what your construction costs will be.
Once you are done with this, you will want to start seeking financing. Grant funding — from public agencies or private foundations — is rare, and businesses in this line are often left with no other option but to rely on bank financing and/or private investors. Nevertheless, there are a few public loan and grant programs that have been used by meat processors.
Best Grants to Start a Meat Processing Business
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Local Foods Promotion Program
The Local Food Promotion Program (LFPP) over the years have made fund available for projects that develop, arrange, and boost local and regional food business endeavor.
This grant can be utilized for the planning stages of starting or expanding local and regional food business endeavors or to improve or expand a food business that supports locally and regionally produced agricultural products.
Requirements
You qualify for this grant if you support local and regional food businesses that process, distribute, aggregate, or store locally or regionally-produced food products.
How to Apply
To apply, you will first have to register with www.grants.gov. You will also be expected to know your Unique Entity Identifier (UEI) number to register.
Immediately roles have been assigned and authorized, and the Authorized Organization Representative (AOR) will submit the application.
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Value-Added Producer Grants
The Value-Added Producer Grant (VAPG) program is meant to encourage agricultural producers to venture into value-added activities to make new items, create and boost advertising opportunities, and bolster producer income. Meat processors are also allowed to apply as long as at least 51% of what they make is from their own livestock/poultry.
Requirements
Businesses that meet the qualifications Include:
- Beginning farmer or rancher.
- Socially-disadvantaged farmer or rancher.
- Small or medium-sized farm.
- The ranch structured as a family farm.
- Farmer or rancher cooperative.
How to Apply
You can submit an application online via www.grants.gov. To submit a paper application, send it to the USDA RD State Office in the state where the project will occur. Applicants can easily locate USDA RD State Office contact information at http://www.rd.usda.gov/contact-us/state-offices.
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Indigenous Animals Harvesting and Meat Processing Grant (IAG) Program
The Indigenous Animals Harvesting and Meat Processing Grant (IAG) Program was established to make available around $50 million to boost tribal nations’ food and agricultural supply chain sustenance by developing and expanding value-added infrastructure related to meat from indigenous animals like bison, reindeer, or salmon.
The essence of this program is to make finance available for projects that focus on boosting a local capacity for the harvesting, processing, manufacturing, storing, transporting, wholesaling, or distribution of indigenous meats.
Requirements
- Tribal Governments of Indian tribes, their wholly owned arms, and instrumentalities, or joint or multi-tribal government entities
- Processing businesses possessed by non-tribal-governmental entities, including individual tribal members, are not eligible for funding under this program.
How to Apply
- Before sending in an application, verify that your organization is registered with Grants.gov and the System for Award Management (SAM).
- Adhere to the application instructions and submission requirements in the RFA and Grants.gov Application Guide (pdf).
- Ensure that all the required forms are submitted as part of a complete application package. Your application will be thrown out if all required forms are not submitted together.
- Submit application through Grants.gov.
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Local Meat Capacity Grant (Local MCap)
Note that this program will make available up to $75 million in grants to ensure that innovative projects designed to build resilience in the meat and poultry supply chain will see the light of day.
The primary objective of this grant program is to support meat and poultry processors with smaller-scale projects, with an aim to boost processing availability and a wide range for local and regional livestock producers.
Requirements
- All business entities (irrespective of legal structure) that take part in meat and poultry processing, such as rendering animal carcasses or byproducts. Qualifying entities include Tribes and Tribal Entities, for-profit entities, non-profit entities, and State or local government entities.
- Private entities will need to be independently owned and operated, and all applicants will have to be domestically owned.
- Aside from that, applicants’ facilities will need to be physically located within the 50 States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.
How to Apply
- Before sending in an application, verify that your organization is registered with Grants.gov and the System for Award Management (SAM).
- Adhere to the application instructions and submission requirements in the RFA and Grants.gov Application Guide (pdf).
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Rural Energy for America Program
Keep in mind that this program makes available guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.
Meat processors can as well apply for new energy-efficient equipment and new system loans for agricultural production and processing. Applications are being considered each quarter of the year.
Requirements
Eligible businesses are agricultural producers and small businesses
How to Apply
To apply, you must be pre-registered with the System for Award Management (SAM) and also have a Unique Entity ID.
You do not need to do it again if you are already registered with these systems. You can also apply through your state USDA Rural Development office.
Other Available Grants to Consider for a Meat Processing Business
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National Association for the Self-Employed (NASE)
Small business owners including meat processing business owners can receive small business grants through the National Association for the Self-Employed (NASE).
This trade association supports small businesses and entrepreneurs. NASE does not specifically target Hispanic business owners but all self-employed businesses that need funds to grow.
You need to be a registered member of the NASE for at least three months and have a strong business plan to be eligible to get a monthly grant of up to $4,000.
Members enjoy discounts on business expenses in addition to loans and other resources that facilitate business growth. You can apply on the NASE website if eligible.
Eligibility Requirement
- Have fewer than 20 full-time staff.
- You must have an EIN or ITIN number.
- Must have been operational for at least nine months.
How to Apply
You are required to visit their website to fill out the applications when it is made open. You must make sure you have all the required documents handy when filling out the form.
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U.S. Department of Commerce Minority Business Development Agency (MBDA)
The MBDA is a Washington, DC-based organization established in 1969 by President Richard Nixon. The sole intention of this grant is to boost more minority-owned businesses in the United States.
This organization over the years has offered numerous programs either to boost your existing business or to help you in starting and managing one.
Requirements
To be eligible, you will need to be “at least 51 percent owned and operated by an individual that is at least 25 percent African American, Asian, Hispanic, or Native American”.
How to Apply
- Register your business to apply for an MBDA grant
- Understand the Grant Announcement
- Attend a pre-application teleconference to learn more about the grant and requirements
- Understand the evaluation process
- Prepare and Submit the Application.
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SBA 8(a) Business Development Program
The SBA 8(a) Business Development Program helps small businesses owned by socially and economically disadvantaged individuals gain access to government contracts and resources.
To qualify, businesses must be at least 51% owned and controlled by individuals who are socially or economically disadvantaged.
Once accepted, participants receive training, counseling, and competitive advantages in federal contracting opportunities, helping them grow and succeed in the marketplace.
The program aims to level the playing field for minority-owned businesses, providing opportunities for growth and economic empowerment.
Eligibility Requirements
The federal government defines who qualifies for the 8(a) BD Program in Title 13 Part 124 of the CFR.
An applicant must:
- Be a small business;
- Not have previously participated in the 8(a) BD Program;
- Be at least 51 percent owned and controlled by U.S. citizens who are socially and economically disadvantaged;
- Have a personal net worth of $850K or less, adjusted gross income of $400K or less, and assets totaling $6.5 million or less; and
- Demonstrate good character and potential to perform on contracts.
Steps on How to Apply
- Identify your primary NAICS code(s).
- Register your business in the System for Award Management (SAM) and the Dynamic Small Business Search (DSBS).
- Make sure to apply for 8(a) certification at certify.sba.gov.
- Before you start, make sure you visit the Knowledge Center on the Certify website.
- Get local assistance and find out if you are ready to apply by meeting with an SBA Business Opportunity Specialist or APEX Accelerator (formerly Procurement Technical Assistance Center) counselor.
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USDA Rural Business Enterprise Grants
The USDA Rural Business Enterprise Grants aim to support rural economic development by providing funds to small businesses and organizations.
These grants help finance projects that create jobs, improve infrastructure, and stimulate economic growth in rural areas.
Eligible recipients include rural cooperatives, nonprofits, and local governments. Funds can be used for various purposes such as purchasing equipment, expanding facilities, or conducting feasibility studies.
The USDA Rural Business Enterprise Grants prioritize projects that benefit low-income communities and address local needs.
By investing in rural businesses, these grants contribute to building stronger and more vibrant rural economies, fostering sustainable development and prosperity.
Applications will compete in two separate categories, business opportunity grants, and business enterprise grants, for use in funding various business and community projects that serve rural areas.
How to Apply
To complete an application for this program, you must be pre-registered with the System for Award Management (SAM). Neither of these applications cost money, but they can take time so be sure to get this taken care of right away.
If you are already registered with these systems, you do not need to do it again. Note that all applications are evaluated based on:
- Evidence showing job creation at local businesses.
- Percent of non-federal funding committed to the project.
- Economic need in the area to be served.
- Consistency with local economic development priorities.
- Experience of the grantee with similar efforts.
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Grant.gov
Grant.gov is a U.S. government organization that provides access to the most extensive collection of federal funding. A variety of grant possibilities are available on Grant.gov for different kinds of businesses, including meat processing businesses.
On the website, small business owners can look up grants and submit applications. Before applying, it is important to be aware of your eligibility status because different organizations have different requirements.
However, as most government policy initiatives favor enterprises in the science and technology industries, they have a better chance of discovering grant opportunities on grant.gov.
Eligibility Requirements
Make sure you or your business is qualified to apply for the award before starting the application procedure. Two factors determine eligibility:
- Creating an account on Grants.gov
- Knowing the legal requirements for the funding opportunity
How to Apply
- To get a general overview of grants, visit the Grants Learning Center.
- Before applying, be certain that you are qualified.
- Look for federal funds that are relevant to your work.
- Become a member of Grants.gov to apply through Workspace.
- Utilizing Workspace, complete and submit your application.
- For submission status, enter your Grants.gov tracking number(s).
Mentioned above are grants to consider when looking to start a meat processing plant. You may not really need to hire a grant writer to submit a winning proposal, however, it could help.
Have it in mind that experienced grant writers are known to possess a lot of clients with similar deadlines. As such, ensure to reach out to them well ahead of time if you plan to apply.