Meat and Poultry Processing Expansion Program - Phase 2 | RD RBS 23 02 MPPEP

Opportunity Information: Apply for RD RBS 23 02 MPPEP

The Meat and Poultry Processing Expansion Program - Phase 2 (MPPEP Phase 2) is a competitive federal grant opportunity run by the USDA Rural Development, Rural Business-Cooperative Service (RBCS). It is funded under Section 1001(b)(4) of the American Rescue Plan Act (ARPA), which set aside resources to strengthen and stabilize food and agricultural supply chains. In practical terms, this program is designed to increase U.S. meat and poultry processing capacity by helping processors build new facilities or renovate, expand, and modernize existing ones. The larger policy goal is to improve supply chain resiliency and promote competition in meat and poultry markets, giving producers more processing options and helping reduce bottlenecks that can disrupt farm income and consumer supply.

Phase 2 is a separate funding round from MPPEP Phase 1 (which was announced earlier under a different RFA). For Phase 2, USDA has partnered with the New Hampshire Community Loan Fund through a cooperative agreement. Under this arrangement, the cooperator supports program administration tasks such as helping manage awards, disbursing grant funds, servicing grants over the project life, monitoring progress, tracking performance, and conducting site visits. Even with that support, USDA keeps control over core governmental functions: outreach, confirming whether applicants and projects are eligible, and scoring and selecting applications for award. USDA obligated about $123 million to be made available for awards under this round.

The funding structure is significant and requires applicants to bring substantial matching resources. Individual awards range from a minimum of $250,000 to a maximum of $10 million, with an additional cap that the award cannot exceed 30 percent of total project costs. Stated another way, recipients must cover at least 70 percent of total project costs through non-federal sources, and applications must clearly identify where that cost share will come from and how much is committed. Because of this design, the program is best suited to applicants that can document solid financing plans, firm commitments, or other credible sources of capital for the majority of the project budget.

Eligible applicants are broad and include Tribes and tribal entities, for-profit businesses, nonprofits, producer-owned cooperatives and corporations, certified benefit corporations, state and local governments, and other business types regardless of legal structure. However, there are key operational and ownership conditions. Applicants must currently engage in, or propose to engage in, either (1) slaughter or (2) slaughter plus further processing, and they must plan to operate under USDA inspection or a state inspection program that is equivalent. Private-sector applicants must be independently owned and operated, all entities must be domestically owned, and the facility tied to the project must be physically located and operated in the United States or U.S. territories.

The program also draws a firm line against the largest incumbent firms in the industry. Companies that are considered nationally dominant in beef, pork, chicken, or turkey processing are not eligible under this RFA. The notice defines nationally dominant as having a market share greater than or equal to the entity holding the fourth-largest share in that species market. This exclusion is consistent with the program's intent to expand capacity among small and mid-sized processors and to diversify processing options rather than reinforce existing concentration.

Eligible projects must involve processing meat and poultry for human consumption. Within that basic requirement, USDA indicates it may take additional factors into account to shape a balanced portfolio of awards. These considerations can include geography (to spread capacity more broadly), operation size, species handled, ownership structure, business model, service to underserved communities, and climate and environmental impacts. In other words, applications that not only expand capacity but also address gaps in regional processing access, support smaller producers, or show responsible environmental practices may align well with the program's broader objectives.

Applications are competitively scored, and RBCS emphasizes that it intends to fund high-quality proposals that closely match program goals and satisfy all requirements, including the cost-share rules and documentation. The opportunity is listed as a discretionary grant under CFDA 10.381, categorized under business and commerce and food and nutrition. The funding opportunity number is RD RBS 23 02 MPPEP, and the original closing date shown for this announcement was November 22, 2023. USDA also notes that technical assistance is available to support prospective applicants in preparing their grant applications, which can be especially helpful given the complexity of matching funds, facility planning, inspection readiness, and the level of detail typically expected in federal project proposals.

• The Rural Business-Cooperative Service in the business and commerce, food and nutrition sector is offering a public funding opportunity titled "Meat and Poultry Processing Expansion Program - Phase 2" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.381.
• This funding opportunity was created on 2023-08-24.
• Applicants must submit their applications by 2023-11-22. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $10,000,000.00 in funding.
• Eligible applicants include: State governments, County governments, City or township governments, Native American tribal governments (Federally recognized), Native American tribal organizations (other than Federally recognized tribal governments), Nonprofits having a 501 (c) (3) status with the IRS, other than institutions of higher education, For-profit organizations other than small businesses, Small businesses, Others.

Apply for RD RBS 23 02 MPPEP

[Watch] Creating a grant proposal using the step-by-step wizard inside the applicant portal: