New SBA grocery guarantee loans will open on May 1 for farmers and other agricultural businesses, according to DTN. The report says the Small Business Administration will make the new financing available through its International Trade Loan program, giving eligible crop and livestock operations access to borrowing of up to $5 million through private lenders backed by a federal guarantee.
The new option matters because DTN says it gives producers access to a loan cap that is more than double the current Farm Service Agency guaranteed loan limit. The article says the loans are designed to support a wide range of businesses tied to food production and sales, from farms and ranches to retailers, wholesalers, trucking companies, and grocery stores. The original DTN report is here DTN article.
New SBA grocery guarantee loans offer bigger borrowing limits than FSA
DTN says the new Grocery Guarantee loan will provide access to as much as $5 million starting May 1. By comparison, the article says the current Farm Service Agency guaranteed loan limit is $2.34 million. That size difference is one of the clearest reasons the new SBA option could attract attention from producers who need larger financing capacity.
The report also says the SBA guarantee will cover up to 90% of the loan value. DTN notes that this is higher than the standard 75% guarantee under SBA’s 7(a) program, while USDA’s FSA guaranteed loans cover 95%. For program background, readers can also review the SBA International Trade Loan program.
The loans are open to a broad range of agriculture related businesses
According to DTN, the purpose of the loans is to boost investments in production capacity, processing, and distribution in order to increase the supply of domestic food products and lower grocery prices. The article says nearly every form of crop and livestock production is eligible, and it specifically notes that poultry and egg production are included in the expanded program.
DTN also says the loans are not limited to farms alone. Other businesses that support agricultural production, including farm retailers, wholesalers, trucking companies, and grocery stores, are also eligible to apply. That broad eligibility makes the program relevant across several parts of the food supply chain rather than only at the farm level.
Higher loan caps come with higher rates and fees
DTN says the bigger SBA loan limit does not automatically make it a cheaper option. The article says lenders set rates for both SBA and FSA guaranteed loans, but the typical maximum rates differ. FSA’s typical maximum rate is listed at 9.5% to 12%, while SBA’s typical maximum rate is 13% to 15%. DTN also says smaller SBA borrowers can face higher rates than large borrowers.
The article says SBA also charges larger upfront fees than USDA. DTN compares that with USDA’s 1.5% fee on the guaranteed portion of its loans, while noting that both agencies charge annual fees of 0.55% on the outstanding guaranteed amount. It also says larger SBA loans with maturities of 15 years or more can carry prepayment penalties if paid off during the first three years.
What farmers may weigh before choosing an SBA or USDA loan
DTN says both USDA and SBA operate under versions of a lender of last resort rule. Under FSA rules, farmers must show they cannot obtain sufficient commercial credit at reasonable rates and terms. DTN says SBA has a similar requirement, although banks self certify those conditions for SBA loans.
The article also points to differences in loan volume and lender networks. DTN says SBA’s 7(a) program provided $45 billion in loans to 85,000 businesses last year, including more than $7 billion in rural communities in 2025. For broader farm finance and business coverage in English, readers can also see Agroinformacion. The original report was published by DTN on its agriculture news website on April 6, 2026.