NEW SBA GROCERY GUARANTEE PROGRAM TARGETS FOOD SUPPLY CHAIN COSTS

Last Friday, the Administration announced a new initiative through the U.S. Small Business Administration (SBA) called the Grocery Guarantee Program. The program is designed to strengthen the domestic food supply chain by expanding access to capital, with the broader goal of helping stabilize and reduce grocery costs for consumers.

The Grocery Guarantee Program will operate through SBA’s International Trade Loan Program and provides loans backed by a 90% federal guarantee. That level of backing significantly reduces risk for lenders, making it easier for eligible businesses to secure financing. The program is open to a wide range of participants across the food system, including agricultural producers, food wholesalers, and logistics providers.

“Since Day One, President Trump has taken action to expand America’s food production and cut grocery prices for families,” said SBA Administrator Kelly Loeffler. “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. By fueling domestic capacity, we will continue to tackle the record-high prices of the Biden Administration – and fill America’s grocery stores with affordable, nutritious, homegrown food.”

In practical terms, this program is aimed at supporting investments that improve how food moves from the farm to the consumer. That could include upgrades to storage facilities, expansion of processing capacity, improvements in transportation networks, or other infrastructure that helps reduce inefficiencies and manage costs. By targeting these parts of the supply chain, the program is intended to address some of the underlying drivers of higher food prices.

Participation in SBA programs is limited to businesses that meet federal size standards, which are based on annual revenue or employee thresholds. As a result, not every operation will qualify directly. However, many small- and mid-sized businesses that play a critical role in the food supply chain are expected to be eligible.

The Grocery Guarantee Program is still in its early stages, and additional details on implementation and eligibility will be important to watch in the coming months. As those details become clearer, we will continue working with partners and federal agencies to ensure Washington agriculture is well-positioned to engage where it makes sense.

To read more about the program visit SBA's official website and news release here.