The Rural Development Finance Corporation has issued its first loan through the Meat and Poultry Intermediary Lending Program (MPILP), which offers low-interest financing for the start-up, expansion or operation of regional meat processing facilities, to Kramlich-Deede Meats in Medina. RDFC participated with a local lender, Dakota Heritage Bank, to provide the loan, which will help Kramlich-Deede Meats expand and improve efficiencies.
“Kramlich-Deede Meats provides a vital service to the Medina community, serving as both the local butcher shop and grocery store,” says Brenna Ohman, RDFC interim executive director. “This low-interest loan will allow them to broaden their impact on the community and surrounding area by providing five additional jobs and increasing meat processing capacity, benefiting local farmers and ranchers.”
The financing will allow Kramlich-Deede Meats to purchase additional equipment to improve efficiencies. These efficiencies will help the business obtain a grant of official inspection for the North Dakota Meat and Poultry Inspection Program, providing new market opportunities. Upon passing inspection, Kramlich-Deede Meats plans to sell its sausage and snack sticks in retail locations, such as gas stations and grocery stores.
Made possible through a $10 million U.S. Department of Agriculture grant, MPILP strengthens the financing capacity of regional meat processing plants, cultivating a more resilient, diverse and secure food supply chain. Loans are available at a 2% fixed interest rate with a 1% origination fee and flexible terms. Revolved funds will be made available to any business operating in the mid-tier food supply chain.
“Addressing challenges and filling gaps within our country’s food supply chain has been a major priority of the Biden administration,” says Erin Oban, USDA Rural Development state director. “USDA Rural Development is grateful for the leadership at RDFC for applying for and making these dollars available to meet the unique needs of food access in rural North Dakota. The federal funding awarded to RDFC is doing exactly what was intended by supporting a business so essential to the community of Medina.”
North Dakota Association of Rural Electric Cooperatives press release
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