The Small Business Administration (SBA) announced an enhanced loan program for small businesses across America’s food supply chain for increasing supply resilience in the market, and reducing grocery costs for consumers, according to a March 27 news release.
Starting May 1, the businesses will be eligible for a “grocery guarantee” loan program that builds upon the existing SBA International Trade Loan (ITL) Program. The loan comes with a 90 percent federal guarantee, and is made available to a wide range of producers in the agriculture and logistics industries, which includes farmers, fishermen, wholesalers, truckers, and others.
When businesses in the sector get access to more capital, it helps maintain consistency in supply, and reduce price disruptions for everyday consumers.
President Donald Trump said in a meeting with American farmers at the White House on March 27, “In addition to help bring down grocery costs even more, today I’m pleased to announce that the Small Business Administration ... is opening up massive new loan guarantees for farmers and food suppliers including vegetable farmers, grain farmers, and seed farmers, cattle, pig, and poultry producers, grocery wholesalers, and many more.”
SBA Administrator Kelly Loeffler said regarding the program, “Since Day One, President Trump has taken action to expand America’s food production and cut grocery prices for families.”
“Today, the Trump SBA is proud to announce a new Grocery Guarantee that will drive even more investment in our nation’s food supply chain—infusing farmers, ranchers, and logistics providers with expanded access to capital that will increase production, processing, and distribution.”
Through the latest announcement, the ITL Program increased the SBA guarantee to 90 percent compared to the standard 75 percent guarantee for the agency’s popular 7(a) Loan Program. The increase in capital is expected to support investments in production capacity, processing, and distribution to increase the supply of domestic food products.
The SBA deployed more than $7 billion in capital to rural communities out of a total of $45 billion in lending across 85,000 small businesses last year, cited SBA data.
Easing Restrictions for Diesel-Based Equipment
On March 27, the Environmental Protection Agency (EPA) announced that it has removed the diesel exhaust fluid (DEF) sensor requirement for all diesel equipment.According to the EPA, this would help save farmers and truckers across the country over $13 billion annually.
The DEF is a liquid which is used to clean up the vehicle’s exhaust, and reduce harmful nitrogen oxide (NOx) pollution from the engine.
In the current scenario, if DEF sensors fail, it results in the farmer being stranded out mid-field, or in the case of a trucker, the 18-wheeler will abruptly slow to a snail’s pace and stall on the side of a highway.
Sudden speed losses and shutdowns are “unacceptable and problematic,” said the EPA.
The “EPA’s new guidance, which removes DEF sensors, will provide immediate relief and save billions of dollars in repairs and lost productivity. According to the U.S. Small Business Administration (SBA), this guidance will save farmers $4.4 billion a year and this action will provide $13.79 billion a year of savings to Americans.”
“Failing DEF systems are not an East Coast or West Coast or heartland issue; it is a nationwide disaster. I have heard from truck drivers, farmers, and many others complaining about DEF and pleading for a fix in all 50 states I visited during my first year as EPA administrator,” said EPA Administrator Lee Zeldin.
The EPA statement noted that the latest announcement does not weaken or remove existing emissions standards.
Nonprofit advocacy group, the Environmental Defense Fund said in a letter addressed to Zeldin earlier this year that “tailpipe emissions are a significant source of pollutants including NOx, particulate matter (PM2.5), non-methane organic gas and volatile organic compounds—pollutants that are linked to asthma and other lung diseases, heart disease and premature death.”
“We urge EPA to keep existing standards in place, so that communities across the country can benefit. ... Any rollback would lead directly to increased hospitalization rates, lost work and school days, and thousands of preventable deaths,” said the letter.