2023_LMCG_RFA_Compliant.pdf

OMB No. 0581-0240

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Local Meat Capacity Grants

Fiscal Year 2023 Request for Applications

Funding Opportunity Number: USDA-AMS-TM-LMCG-G-23-0017

Publication Date: APRIL 19, 2023

Application Due Date: 11:59 PM Eastern Time on July 19, 2023

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Program Solicitation Information

Funding Opportunity Title: Local Meat Capacity Grant Program

Funding Opportunity Number: USDA-AMS-TM-LMCG-G-23-0017

Announcement Type: Initial

Assistance Listing (formerly CFDA) Number: 10.189

Dates: Applications must be received on or before 11:59 pm Eastern Time on July 19, 2023, through Grants.gov. Applications received after this deadline will not be considered for funding.

Executive Summary: The U.S. Department of Agriculture (USDA), Agricultural Marketing Service (AMS), requests applications for the fiscal year (FY) 2023 Local Meat Capacity Grants (Local MCap). This program supports independently owned meat and poultry processing businesses with funds to provide more and better processing options for local livestock producers by modernizing, increasing, diversifying and decentralizing meat and poultry processing capacity, including support for rendering.

Approximately $75 million is available under this grant program, subject to appropriations and funds availability. Awards will range from $100,000 to $5 million for Processing Expansion Projects to support a wide range of activities to increase and diversify processing capacity, including equipment purchases (including equipment-only purchases over $250,000) and building and facilities upgrades. A non-Federal match of 50% of the total proposed project cost (with a reduced match for underserved producers and business owners) is required for the Processing Expansion Projects (see section 4.1).

AMS is also offering a Simplified Equipment-Only application with no matching funds requirement for projects that solely request the cost of equipment and range from $10,000 to $250,000, and do not include renovation or staffing costs. This option is designed to reduce administrative burden for the recipient.

AMS will award competitive grants to eligible applicants that submit high quality proposals that meet the purpose and program requirements for this program. This announcement provides eligibility criteria for applicants and projects, details on match requirements, and the forms and instructions required to apply for an award. Eligible entities are those engaged in meat and poultry processing, including rendering animal carcasses or byproducts. Eligible entities may be Tribes and Tribal Entities, for-profit entities, non-profit entities, and State or local government entities (more detail in section 3.1). Up to 10% of available funds may be awarded to rendering projects.

AMS will prioritize applications from applicants that engage with underserved producers. AMS also encourages applications that support smaller farms and ranches in the region, new and beginning farmers and ranchers, veteran producers, and/or underserved communities. For grants intending to serve these entities, applicants should engage and involve those individuals and groups when developing project applications.

USDA promotes climate-resilient landscapes and rural economic systems, including tools to support agriculture, forests, grazing lands, and rural communities. AMS encourages applicants to consider including goals and activities related to mitigating or adapting to climate change in their project’s design and implementation.

AMS offers no-cost technical assistance to meat and poultry processor applicants through its Meat and Poultry Processing Capacity Technical Assistance Program (MPPTA). Applicants are encouraged to http://www.grants.gov/

3 | P a g e contact the MPPTA network of providers for broad-scope technical support from pre-application to post-award grant management, business planning and processing operational resources, supply chain development expertise, and resources specific to historically underserved USDA stakeholders. Visit www.ams.usda.gov/mppta to connect with these services.

Application Checklist

AMS expects applicants to read the entire RFA prior to submitting their application to ensure that they understand the program’s requirements. This application checklist provides the required documents for an application package.

Local MCap requires that all application packages include the following:

� SF-424 – Application for Federal Assistance (Grants.gov) � SF-424A - Budget Summary (in Grants.gov) � Project Abstract Summary (in Grants.gov) � Project Narrative Template ο Processing Expansion Projects – Project Narrative Template (see section 5.2.4) ο Simplified Equipment-Only Projects – Project Narrative Template (see section 5.2.6)

� Evidence of Critical Resources and Infrastructure (see section 5.2.8)

If applicable, packages may also be required to include the following documents:

� Simplified Equipment-Only Projects - Documentation to substantiate the costs of each piece of proposed equipment (see section 5.2.6)

� Processing Expansion Projects - Signed Letter(s) Verifying Matching Funds for each match resource listed in the application (see section 5.2.5)

� Signed Letter(s) of Support from Producers listed in the application (see section 5.2.8) � Negotiated Indirect Cost Rate Agreement (NICRA) (PDF Attachment)

Tips for Applicants

• To do business with the Federal Government and to submit your application electronically using Grants.gov, you must— ο Have a Unique Entity Identifier (UEI) and a Taxpayer Identification Number (TIN);

ο Be registered in SAM.gov, the Government's primary registrant database;

ο Provide your UEI number and TIN on your application; and ο Maintain an active SAM.gov registration with current information throughout the application review period and, if you are awarded a grant, during the project period.

• Register in Grants.gov and submit applications early. DO NOT WAIT UNTIL THE DAY OF THE

APPLICATION DEADLINE. AMS encourages you to submit your application at least two weeks before the application deadline to ensure all certifications are met.

• Thoroughly read this RFA and follow all instructions.

• Thoroughly review the AMS General Terms and Conditions to understand allowable and unallowable costs.

• Ensure the application excludes unallowable costs and activities per section 4.4

• Ensure the narrative does not exceed the page limit specified in section 5.2.4 http://www.ams.usda.gov/mppta https://www.ams.usda.gov/sites/default/files/media/FY2023_GeneralTermsandConditions.pdf

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• Apply to the correct grant program in Grants.gov using the correct Assistance listing (formerly Catalog of Federal Domestic Assistance (CFDA) number “10.189” and Funding Opportunity Number “USDA-AMS-TM-LMCG-G-23-0017.”

• Ensure you have the most recent copy of Adobe Reader installed on your computer and that it is compatible with Grants.gov software. Grants.gov supports Adobe Reader version 9.0.0 and higher.

• Limit Application File Size/ File Name Characters (50 or less).

• Avoid Special Characters in File Names ($, %, &, *, Spanish "ñ", etc.).

• When uploading attachments, click the “Add Attachments” button (do NOT use the “paperclip” icon in Adobe Reader).

• Do not password-protect your documents and make sure all tracked-changes are “accepted”.

• Input the correct UEI (formerly DUNS) number on the SF-424 form cover page.

• Review the Grants.gov Applicant User and Registration Guides:

http://www.grants.gov/web/grants/applicants/applicant-faqs.html https://www.grants.gov/web/grants/applicants/workspace-overview.html

Timing to Obtain and Submit Grants.gov Required Elements

Required Action Timing to Obtain/Submit Submitting your application. The AMS Deadline to receive final application and all supporting materials through Grants.Gov

July 19, 2023 – 11:59 p.m.

Eastern Time

Obtaining Your Organization’s UEI Number (if you do not already have one) 7-10 business days Establishing an Active SAM.gov Account (if you do not already have one) 7-10 business days Obtaining a TIN/EIN (if you do not already have one) Up to 2 weeks Creating your Grants.gov profile and registering your Authorized Organizational Representative (AOR) authorization Up to 2 weeks http://www.grants.gov/ http://www.grants.gov/web/grants/applicants/applicant-faqs.html https://www.grants.gov/web/grants/applicants/workspace-overview.html

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TABLE OF CONTENTS

1.0 Funding Opportunity Description

1.1 Legislative Authority

1.2 Purpose

1.3 Project Types

1.4 National Environmental Policy Act

2.0 Award Information

2.1 Type of Federal Assistance

2.2 Type of Applications

2.3 Available Funding

2.4 Federal Award Period, Duration, and Size

3.0 Eligibility Information

3.1 Eligible Applicants

3.2 Entities Not Eligible For Funding

4.0 Funding Considerations

4.1 Cost Sharing and Matching

4.2 Indirect Costs

4.3 Subawards

4.4 Allowable and Unallowable Costs and Activities

5.0 Application and Submission Information

5.1 Electronic Application Package

5.2 Content and Form of Application Submission

5.3 Grants.gov Application Submission and Receipt Procedures and Requirements

5.4 Application submission requirements

5.5 Submission Date and Time

5.6 Intergovernmental Review

6.0 Application Review Information

6.1 Project Evaluation Criteria

6.2 Review and Selection Process

7.0 Award Administration Information

7.1 Award Notices

7.2 Unsuccessful Applicants

7.3 Administrative and National Policy Requirements

7.4 Reporting Requirements

7.5 Acknowledgement of USDA Support

8.0 Agency Contacts

8.1 Programmatic Questions

8.2 Available Resources

8.3 Grants.gov Questions

9.0 Other Information

9.1 Definitions

9.2 Equal Opportunity Statement

9.3 Freedom Of Information Act Requests

9.4 Paperwork Reduction

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1.0 FUNDING OPPORTUNITY DESCRIPTION

1.1 LEGISLATIVE AUTHORITY

Section 1001(b)(4) of the American Rescue Plan Act (ARPA) (Pub. L. No. 117—2) funds the Local MCap program, consistent with the purpose of providing “loans and grants and other assistance to maintain and improve food and agricultural supply chain resiliency.” Local MCap is administered by the Agricultural Marketing Service (AMS).

1.2 PURPOSE

The purpose of this program is to build resilience in the meat and poultry supply chain by increasing processing capacity and promoting more competition in the sector. This program is part of the broader Biden-Harris Administration $1 billion investment to expand processing capacity for small and midsized meat and poultry processors. Given that the meat and poultry processing sector is particularly vulnerable to disruption, increasing capacity and promoting competition is a high priority for USDA.

Based on public input, USDA identified an urgent need to expand and diversify meat and poultry processing capacity; increase producer income; provide producers an opportunity to have ownership in processing facilities; create stable, well-paying jobs in rural regions; improve worker health, safety, training, and wages for meatpacking jobs; spur collaboration among producers and workers; prompt State, Tribal, and private co-investment; and provide consumers with more choices.

This Local MCap grant program is targeted to support meat and poultry processors with smaller-scale projects, with a goal to increase processing availability and variety for local livestock producers. Given that byproducts (e.g., meat and bone meal, poultry meal, blood meal, animal fats, etc.) are generated through the slaughter and processing of livestock and, therefore, an essential part of a holistic processing supply chain, rendering plants who can demonstrate how they meet the overarching goals of this program are also eligible to apply. Up to 10% of available funds may be awarded to rendering projects. Local MCap complements the Meat and Poultry Processing Expansion Program administered by Rural Development by providing a targeted program for smaller-scale projects using a streamlined application. Smaller-scale projects eligible for this program include equipment purchases and installation, facility and equipment upgrades, minor alterations and renovation, and capacity expansion.

Because the program aims to support more and better markets for local and regional livestock producers, AMS encourages processor applicants to engage with such producers, especially small and underserved farmers and ranchers. Project plans should be based on the needs of small, underserved, and/or local and regional producers, and thoughtful projections of markets for the processed products.

Additional goals may include reductions in slaughter/processing wait times and pricing uncertainty, more consistent product quality, and more differentiated product options for producers.

This program is also aligned with efforts to:

• Ensure equitable access to USDA programs and benefits from USDA-funded projects and support the policies of Executive Order 13985 (Executive Order on Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government).

https://www.congress.gov/117/plaws/publ2/PLAW-117publ2.pdf https://www.usda.gov/meat https://www.rd.usda.gov/programs-services/business-programs/meat-and-poultry-processing-expansion-program https://www.whitehouse.gov/briefing-room/presidential-actions/2023/02/16/executive-order-on-further-advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government/

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• Contribute to the resilience of the food and agricultural supply chains through support for diversified, value-added agriculture and support the policies of Executive Order 14017 (Executive Order on America’s Supply Chains).

• Promote competition in the food system and support the policies of Executive Order 14036 (Executive Order on Promoting Competition in the American Economy).

• Implement the Build America, Buy America (BABA) Act. Guidance on BABA requirements for USDA award recipients is available here.

1.3 PROJECT TYPES

1.3.1 DEFINITION OF A PROJECT

A project is a set of interrelated tasks with a cohesive, distinct, specified, and defined goal. It follows a planned, organized approach over a fixed period of time and within specific limitations (cost, performance/quality, etc.). Additionally, it uses resources that are specifically allocated to the work of the project and usually involves a team of people.

Projects are different from other ongoing operations in an organization because, unlike operations, projects have a definitive beginning and end – they have a limited duration. A project has an overarching goal that the applicant wants to accomplish through a series of individual activities or tasks.

For this program, applicants can apply to one of the following project types:

• Processing Expansion Projects (section 1.3.2)

• Simplified Equipment-Only Projects (section 1.3.3)

Applicants may only apply for one project type.

1.3.2 PROCESSING EXPANSION PROJECTS

Processing Expansion Projects will fund grants from $100,000 up to $5 million to increase the processing and/or rendering capacity of privately, cooperatively, non-profit, or Tribally held processing facilities as described in this RFA. Applications in this project type may request funding for equipment-only projects over $250,000 or projects that include equipment purchases and facilities upgrades that create new and/or expanded markets for local livestock producers. For funding requests that include building and facility upgrades, those can include improvements, re-arrangements, and/or alterations to a facility that are required to use a space more effectively and to accommodate new or upgraded equipment and processes.

Applications should demonstrate technical feasibility, financial viability, and should identify other non- Federal funds necessary to complete the proposed project. They should also describe engagement with local producers (and for rendering plants, engagement with local producers and/or processors) to identify priorities and demonstrate a clear relationship between proposed activities and enhanced or expanded market options for local producers. See also section 6.1.1 of this RFA for the scoring criteria for this project type.

https://www.whitehouse.gov/briefing-room/presidential-actions/2021/02/24/executive-order-on-americas-supply-chains/ https://www.federalregister.gov/documents/2021/07/14/2021-15069/promoting-competition-in-the-american-economy https://www.usda.gov/ocfo/federal-financial-assistance-policy/USDABuyAmericaWaiver

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Examples of activities and initiatives that can be funded by this program include but are not limited to:

• Expanding processing capacities to increase production volumes, process additional meat and poultry species, or add new value-added product types;

• Upgrading processing and manufacturing equipment;

• Increasing packaging and labeling capacity;

• Increasing cold storage capacity;

• Improving slaughter and humane handling infrastructure;

• Installation of holding pens or wastewater management systems, or other improvements that do not require breaking new ground or constructing new facilities;

• Purchasing equipment or upgrading facilities for rendering carcasses and animal byproducts;

• Minor facility alterations and repairs and equipment purchases for new or improved on-premise retail space;

• Developing, customizing or installing equipment that reduces greenhouse gas emissions, increases efficiency in water use, improves air and/or water quality, and/or meets one or more of USDA’s climate action goals (see https://www.usda.gov/climate-solutions/climate-adaptation-usda);

• Purchase or upgrade equipment to improve worker safety;

• Modernize equipment or facilities to ensure food safety;

• Hiring consultants to develop Hazard, Analysis, and Critical Control Points (HACCP) plans or to develop and provide employee training;

• Training on the use of all equipment purchased under the grant and associated new processes;

• Staffing or operational costs specifically tied to the proposed expansion project.

1.3.3 SIMPLIFIED EQUIPMENT-ONLY PROJECTS

Simplified Equipment-Only Projects offer a simplified application to fund smaller grants between $10,000 and $250,000 for equipment purchases for meat and poultry processors. The Simplified Equipment-Only option is a Fixed Price Grant, meaning it will fund only equipment purchases (and not associated facility upgrades, staffing, or other costs), and the amount awarded will be equal to the cost of the equipment up to $250,000. Applicants must attach documentation to substantiate the costs of each piece of proposed equipment, which can include contracts, catalog pricing or binding quotes provided by license commercial entities. No match is required for this grant.

Applicants are required to provide a project narrative that describes the need for the equipment and the estimated increases in production that will result, as well as other program indicators and outcomes provided on the Project Narrative Template. The project narrative must demonstrate that they source or will source the majority of their animal inputs from local livestock producers (i.e., within 400 miles or within the same State or Tribal lands) and that the project will help offer expanded capacity and/or product options for those producers.

For rendering applications, applicants must provide a narrative, using the Project Narrative Template, that describes the need for the equipment and the estimated increases in rendering that will result, as well as other program indicators and outcomes provided in the Project Narrative Template. The project narrative must demonstrate that the increased rendering capacity will benefit local processors serving https://www.usda.gov/climate-solutions/climate-adaptation-usda https://www.usda.gov/climate-solutions/climate-adaptation-usda

9 | P a g e local underserved producers and will improve the processing landscape and reduce costs for those producers.

See also section 6.1.2 of this RFA for the scoring criteria for this program, which is a subset of the criteria used for the Processing Expansion Projects.

1.3.4 PROJECTS AND ACTIVITIES NOT ELIGIBLE FOR FUNDING

Projects are not eligible for funding if the proposed activities include:

• New construction and/or structural changes to an existing building/facility resulting in a square foot expansion or changes to the building’s floor, foundation, and exterior or load bearing walls.

• Routine maintenance and repair of an organization’s buildings and operational facilities.

• Purchasing land, buildings, or facilities, or any interest therein.

• Paying ongoing staffing or operational costs not specifically tied to the proposed expansion project.

• Expenses that have been or will be reimbursed under any Federal, State, or local government funding.

• Activities already funded by another Federal award program.

1.3.5 FUNDING PRIORITIES

AMS will prioritize applications that demonstrate engagement with and benefit to local livestock producers, including underserved producers.

AMS may prioritize applications based on:

• Diversity in applicants funded in geographic regions and across a variety of species.

• For Processing Expansion Projects: Leverage of significant non-Federal financial and technical resources, as appropriate to the scope and scale of the project. Any match above and beyond the match requirement (see section 4.1) may lend support to the application.

• Size of the operation according to number of head processed annually or number of employees.

Applicants should provide this information as part of their project narrative.

• Whether the projects:

o Are located in communities that have distressed or at-risk scores on the Distressed

Communities Index (DCI) developed by the Economic Innovation Group.

o Enhance worker and/or farmer voice through cooperative ownership, payment of living wages, the provision of worker training, and/or promotion of safe working conditions.

o Enhance local and regional environmental stewardship and climate benefits.

1.3.6 PROJECT EXAMPLES

The following are examples of potential projects that might make use of this grant to expand capacity and provide more and better options for local livestock producers:

• A small meat processing facility proposes to purchase equipment to offer a greater variety of value-added products to its livestock producer customer. After gathering input from local producers, the facility plans to use grant funds to buy equipment to produce sausages, cured meats, and burger patties. Livestock producers will then have more specialized and premium https://eig.org/distressed-communities/2022-dci-interactive-map/ https://eig.org/distressed-communities/2022-dci-interactive-map/

10 | P a g e products they can sell to local restaurants and retailers. The project includes costs associated with moving an interior wall and upgrading the flooring to provide additional processing space within their facility, extending their water lines and adding floor drains.

• A poultry facility is looking to invest in a new conveyor belt line to increase the number of birds it can process. The project also includes costs for hand guards and better knives and related equipment to improve productivity while also protecting workers. The business is not requesting facilities improvement support or other activities not included in the bids or documented equipment costs, and the equipment requested totals less than $250,000 so the owner is able to apply for the Simplified Equipment-Only Project grants.

• A meat processing plant aims to transition into higher-value markets and proposes to invest in cold storage to dry age beef, a premium product. The processing plant could expand into new markets, selling to its regional steakhouse chain and high-end national retail stores. These new markets will allow the plant to pay more to producers for high-quality cattle raised on local farms. The new markets will also allow farms that market their own meat products higher value options without additional cold storage fees necessary when space is limited.

• A farmer-owned cooperative operating a meat processing facility has recruited new members who are poultry producers, and the cooperative will use the grant to install poultry processing equipment and lines to serve those members, building financial capacity and resilience for the cooperative as a whole and ensuring sustainability of the enterprise for all members and their customers.

• Based on requests from local producers and on feedback from customers, an establishment that processes poultry exclusively seeks to expand to process red meat into various items. The establishment proposes to use grant funds to purchase equipment, including grinders and stuffers; modifying the establishment’s existing floorplan and adding a processing line; and hiring a reputable consultant to develop a HACCP plan for production of the meat items and to train employees.

• A new owner of a recently closed meat processing plant requests funds to purchase and install equipment and do some facility upgrades to meet food and worker safety standards and restart processing activities to reinstate the market for livestock producers in the region.

• A rendering plant has spoken with small processors who are expanding in the area, and identified a need for additional equipment to support the additional animal byproducts that will result from that processing expansion. The rendering plant applies for funds to purchase equipment to meet those processor needs and to upgrade their facility in relation to the expansion.

1.4 NATIONAL ENVIRONMENTAL POLICY ACT

All activities funded under this RFA must comply with the National Environmental Policy Act (NEPA), Section 106 of the National Historic Preservation Act, other laws and regulations, and any applicable State, local, or Tribal laws. A review for NEPA compliance is required prior to the award of grant funds.

AMS may request additional information for the purposes of completing the environmental review.

https://ceq.doe.gov/laws-regulations/regulations.html

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If selected for an award, grant recipients will need to provide all requested information to support compliance with NEPA, Endangered Species Act (ESA), National Historic Preservation Act (NHPA), and other Federal laws or regulations as part of the administrative review process. Costs associated with satisfying environmental review requirements and permits are eligible for reimbursement as pre-award expenses if the project is funded and AMS approves the request. See Program Specific Terms and Conditions for more information.

AMS reserves the right to deny an application that has the potential for significant environmental impacts, cannot obtain proper permitting, or does not meet NEPA or permitting policies or does not provide documentation by established time frame. More information on the NEPA Policy is in Program Specific Terms and Conditions.

2.0 AWARD INFORMATION

2.1 TYPE OF FEDERAL ASSISTANCE

AMS will use a Grant Agreement to provide a Federal award to successful applicants.

2.2 TYPE OF APPLICATIONS

New application. All new applications will be reviewed competitively using the selection process and evaluation criteria described in section 6.0.

2.3 AVAILABLE FUNDING

The anticipated amount available for the Local MCap Program in FY 2023 is approximately $75 million.

All awards will be awarded in FY 2023. Funding will be issued as competitive awards. Enactment of additional continuing resolutions or a full appropriations act may affect the availability or level of funding for this program. USDA is not committed to fund any particular application or to make a specific number of awards.

2.4 FEDERAL AWARD PERIOD, DURATION, AND SIZE

Applicants must plan to complete their projects within the performance period of the grant.

Award size varies by project type. Applicants may not request less than or more than the respective minimum/maximum amounts for each project type.

Project Type Duration (Months)

Anticipated Start Date

Anticipated Completion Date

Minimum Award

Maximum Award

Processing Expansion Projects 36 11/30/2023 11/29/2026 $100,000 $5,000,000

Simplified Equipment-Only Projects

24 11/30/2023 11/29/2025 $10,000 $250,000 https://www.fws.gov/law/endangered-species-act https://www.nps.gov/subjects/historicpreservation/national-historic-preservation-act.htm https://www.ams.usda.gov/sites/default/files/media/LocalMCAPProgramSpecificTermsandConditions.pdf https://www.ams.usda.gov/sites/default/files/media/LocalMCAPProgramSpecificTermsandConditions.pdf https://www.ams.usda.gov/sites/default/files/media/LocalMCAPProgramSpecificTermsandConditions.pdf

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3.0 ELIGIBILITY INFORMATION

3.1 ELIGIBLE APPLICANTS

Eligible applicants for Local MCap grants include business entities (regardless of legal structure) engaged in meat and poultry processing, including rendering animal carcasses or byproducts. Eligible entities include Tribes and Tribal Entities, for-profit entities, non-profit entities, and State or local government entities. Private entities must be independently owned and operated, and all applicants must be domestically owned. Additionally, applicants’ facilities must be physically located within the 50 States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.

Eligible entities must be existing operations and must process or plan to process one or more species subject to the Federal Meat Inspection Act (FMIA) or the Poultry Product Inspection Act (PPIA) and possess or plan to obtain a Federal Grant of Inspection, a grant of inspection under the Food Safety Inspection Service (FSIS) Cooperative Interstate Shipment Program, or a State meat and poultry inspection program with standards at least equal to Federal inspection at the time of application. Plants processing non-amenable species under voluntary FSIS or State inspection are also eligible to apply for funding. For the purposes of this grant, an existing operation can include an entity who is restarting an existing facility (e.g., reopening a plant with a new owner or restarting a temporarily closed business).

Applicants that are nationally dominant in beef, pork, chicken, or turkey processing are ineligible; for the purpose of this RFA, nationally dominant is characterized as holding a market share greater than or equal to the entity that holds the fourth largest share of the market for any of the following species:

beef, pork, chicken, or turkey processing.

Entities that received grants under the AMS Meat and Poultry Inspection Readiness Grant (MPIRG) program may apply for this program, but they must successfully complete and close out their MPIRG grant before being awarded a Local MCap grant award. MPIRG grant recipients may not request funds for expenses already included in their MPIRG grant project.

For the purposes of this program, processors who do further processing activities must be primarily conducting further processing of the products of slaughter and primary processing from their own facility or further processing that contributes to value-added product opportunities for small, local livestock producers.

The following definitions are provided here for convenience, and also appear in the Definitions in section 9.1.

Processor: For the purposes of this program, a processor is a business engaged in the slaughter, primary processing, or further processing of meat or poultry for human consumption. See also Processing, Primary Processing, and Further Processing.

Processing: Includes slaughter, primary processing and further processing of meat or poultry for human consumption. See also Primary Processing and Further Processing.

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Primary Processing: Includes slaughtering, cutting, and boning of raw meat and poultry for human consumption.

Further Processing: Conversion of raw meat and poultry products, through smoking, curing, salting, fermenting, cooking, canning, curing, refining, or rendering into cooked, cured and preserved products for human consumption.

Rendering: Rendering is an off-site process that uses heat to convert animal carcasses into safe, pathogen-free feed protein and other valuable end products while reducing the negative effects of the carcasses on people and the environment.

3.2 ENTITIES NOT ELIGIBLE FOR FUNDING

1. Meat and poultry processing entities that are custom-exempt or otherwise uninspected with no plans to operate under Federal inspection or State equivalent inspection.

2. Meat and poultry processing entities that are exclusively for non-commercial use.

3. Applicants that hold a market share greater than or equal to the entity that holds the fourth largest share of that market for any of the following species: beef, pork, chicken, or turkey processing.

4. Multiple applications from separate applicant entities with identical or greater than 75 percent common ownership, or from a parent, subsidiary or affiliated organization (with ‘‘affiliation’’ defined by Small Business Administration regulation 13 CFR 121.103, or successor regulation) are not permitted.

4.0 FUNDING CONSIDERATIONS

4.1 COST SHARING AND MATCHING

For the Processing Expansion Projects:

• Match Requirements. Grant recipients are required to contribute 50% of the total proposed project cost as a match to Federal funding. This applies to all applicants except those who qualify for the reduced match described in the next bullet.

• Reduced Match for Small and Underserved Business Owners. For grant recipients that are Historically Underserved Farmers or Ranchers or for other businesses that qualify under the Small Business Administration (SBA) categories of Small Disadvantaged Business, Women- Owned Small Business, and Veteran-Owned Small Business, the match requirement is reduced to 25% of the total proposed project cost as a match to the Federal funding. Applicants will be required to self-certify in their Project Narrative Template to being eligible for this reduced match.

For the Simplified Equipment-Only Projects:

• No match is required for the Simplified Equipment-Only Projects, and voluntary match will not be considered in selecting projects.

https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRd133f03f6d8398b/section-121.103#p-121.103(a) https://www.nrcs.usda.gov/getting-assistance/underserved-farmers-ranchers#:%7E:text=Four%20groups%20are%20defined%20by%20USDA%20as%20%E2%80%9CHistorically,all%20people%20and%20ensure%20equitable%20access%20to%20services.

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Match funding may be cash or in-kind. In-kind contributions are defined, when used as a cost share or match for a grant, as the value of goods or services provided for the benefit of the grant program, where no funds transferred hands. For example, a partner, such as a Tribal community member, may volunteer their professional expertise as a match contribution to the project as described in 2 CFR § 200.306(e).

These contributions cannot satisfy a cost sharing or matching requirement for this grant program if they are used toward satisfying a match requirement under any other Federal grant agreement.

All matching contributions must be committed or secured at the time an applicant is recommended for an award. Applicants must indicate the total amount of match and how it will specifically align with their requested funding when completing the budget information section of the project narrative.

Additionally, applicants must submit signed letters or other documentation verifying the match for EACH cash and/or in-kind resource. Refer to section 5.2.5 for more information.

Indirect costs may count toward your match. Refer to section 4.2.1 for more information.

Program income (as defined in 2 CFR § 200.1) or any other Federal funds is an ineligible source of match or cost share.

Project activities ineligible for program funding may NOT be counted as a match.

4.2 INDIRECT COSTS

Indirect costs (also known as “facilities and administrative costs”—defined at 2 CFR § 200.1) are those costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved.

As stated in the regulations (2 CFR §§ 200.414), any non-Federal entity that has never received a negotiated indirect cost rate, except State and Local Government and Indian Tribe Indirect Cost Proposals, may elect to charge a de minimis rate of 10 percent of modified total direct costs (MTDC) which may be used indefinitely. No documentation is required to justify the 10% de minimis indirect cost rate. As described in 2 CFR § 200.403, costs must be consistently charged as either indirect or direct costs, but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all Federal awards until such time as a recipient chooses to negotiate for a rate, which the recipient may apply to do at any time.

All applicants who elect to charge a de minimis rate of 10 percent must use the MTDC to determine the amount of indirect costs that can be included in the budget. MTDC are defined in 2 CFR § 200.1 as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDCs exclude equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $25,000. Other items may be excluded only when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.

If an applicant has an active negotiated indirect cost rate approved by its cognizant agency, the applicant must submit a copy of its approved NICRA with its application. Entities that would like to https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.306#p-200.306(e) https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1#p-200.1(Indirect%20(facilities%20&%20administrative%20(F&A))%20costs) https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRea20080eff2ea53/section-200.403 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1

15 | P a g e negotiate an indirect cost rate must contact their cognizant agency. For assignments of cognizant agencies see 2 CFR § 200.1.

4.2.1 USING INDIRECT FUNDS FOR COST SHARING OR MATCHING

The allowed indirect costs may be included under the Federal portion of the budget or as a non-Federal matching contribution. The applicant may split the indirect cost allocation between the Federal and non-Federal portions of the budget only if the total amount of indirect costs does not exceed the maximum indirect costs allowed. Refer to 2 CFR §§ 200.413 and 200.414 for additional information on determining if costs charged to the award are direct or indirect.

4.3 SUBAWARDS

Subawards or contracts with partners, collaborators, or other parties that provide additional knowledge, expertise, or resources for the purposes of the proposed project are permitted.

4.4 ALLOWABLE AND UNALLOWABLE COSTS AND ACTIVITIES

All AMS awards are subject to the terms and conditions, cost principles, and other considerations described in the AMS General Terms and Conditions and Program Specific Terms and Conditions.

Applicants that have questions concerning the allowability of costs after reviewing this section should contact AMS staff using the contact information listed under section 8.0 Agency Contacts.

In general, grant funds may not be used for the following:

• Pay costs that have been or will be reimbursed by a third party.

• Pay costs incurred prior to the date the grant is executed without prior authorization from AMS and subject to grant award terms and conditions.

• Pay costs that support or oppose union organizing.

• Pay costs associated with conducting research and development.

5.0 APPLICATION AND SUBMISSION INFORMATION

5.1 ELECTRONIC APPLICATION PACKAGE

Only electronic applications for this RFA will be accepted and must be submitted via Grants.gov. We urge applicants to submit early to the Grants.gov system. For an overview of the Grants.gov application process, see Grants.gov’s Apply for Grants webpage. This RFA contains the information needed to obtain and complete required application forms and AMS-specific attachments. More information about applying through Grants.gov can be found in section 5.3.1.

Applications must be submitted via Grants.gov. Applicants should submit applications to the Grants.gov well before the deadline to avoid last minute technical issues. See section 5.3 Grants.gov Application Submission and Receipt Procedures and Requirements for additional application instructions.

Applicants can find the opportunity under either the Assistance Listing number “10.189,” or the Funding Opportunity Number “USDA-AMS-TM-LMCG-G-23-0017”.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group-ECFR2a6a0087862fd2c/section-200.1 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.413 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414 https://www.ams.usda.gov/sites/default/files/media/FY2023_GeneralTermsandConditions.pdf https://www.grants.gov/web/grants/applicants/apply-for-grants.html

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5.2 CONTENT AND FORM OF APPLICATION SUBMISSION

5.2.1 SF-424 APPLICATION FOR FEDERAL ASSISTANCE

Required: Form SF-424 is available via the opportunity at Grants.gov. Applicants may use the following supplemental instructions associated with specific blocks on the SF-424.

Box Instructions 1 - Type of Submission Select Application 2 - Type of Application Select New 8.c - Organizational Unique Entity Identifier (UEI)

Enter applicant UEI for the organization submitting the application.

8.d - Address Enter the organization street address as it appears in SAM.gov. P.O. Boxes will not be accepted. Enter a 9-digit zip code

10 - Name of Federal Agency AMS, USDA 11 - Catalog of Federal Domestic Assistance Number (Assistance Listing Number)

Enter 10.189

12 - Funding Opportunity Number Enter USDA-AMS-TM-LMCG-G-23-0017 13 - Competition Identification Number Not applicable 14 - Areas Affected by Project Enter cities, counties, States affected by project 15 - Descriptive Title of Applicant’s Project

Provide a short descriptive title of the project

16a - Congressional Districts for Applicant

Enter the Congressional district where the applicant is located

16b - Congressional Districts for Program/Project

Enter the Congressional district where your project will be implemented, or “All” if the project will be implemented in more than one location

17 - Proposed Project Start Date and End Date

Enter Start Date and End Date

18.a - Estimated Funding - Federal Enter the total Federal amount requested 18.b – 18.f Estimated Funding – Applicant

Enter the total match amount from the applicant organization and/or other partners

19 - Is Applicant Subject to Review by State Under Executive Order 12372 Process?

See section 5.6

5.2.2 SF-424A BUDGET INFORMATION

Required. The SF-424A is available via the application package in Grants.gov. Most information blocks on the required form are either self-explanatory or adequately explained in the form instructions.

However, for Local MCap applications the following supplemental instructions must be used for specific boxes on the form.

On the SF-424A, please complete only Sections A, B, and C. Do not complete Sections D-F.

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Section A – Budget Summary Box Instructions

1.a – Grant Program Function or Activity Enter “Local MCap – Federal” 1.b – Catalog of Federal Domestic Assistance Number

Enter “10.189”

1.e – Federal Enter the amount of Federal funding requested for the project

1.f – Non-Federal Enter the total match contribution amount provided for the project

Section B – Budget Categories Box Instructions

6.a – 6.j – Object Class Categories In Column 1, enter the amount of Federal funds requested for each Object Class Category. Do not include match funding.

For example, if you are requesting $2,000 in Federal funds for “Travel”, enter 2000 in Column 1, box 6.c

Section C – Non-Federal Resources Box Instructions

8.a – Grant Program Should auto-populate from Section A, Box 1.a 8.b – 8.d Enter the match amount being provided from each source (Applicant, State, or Other) for the project

5.2.3 PROJECT ABSTRACT SUMMARY

Required for both Processing Expansion and Simplified Equipment-Only applications. The Project Abstract Summary form will be used as the award description for the overarching Federal award. This is separate from the Project Narrative Template. The Project Abstract Summary must include:

• Project purpose

• Activities to be performed

• Deliverables and expected outcomes

• Intended beneficiary(ies): Who will benefit from this beyond the applicant organization?

• Subrecipient, key partner, and collaborator activities. Identify the key partners, collaborators and subrecipients you know will be part of the work and how their engagement will support the program goals.

5.2.4 PROJECT NARRATIVE – PROCESSING EXPANSION PROJECT TYPE

Required for Processing Expansion Projects: Applicants are required to use the Processing Expansion Projects – Project Narrative Template form to apply to this project type. Your narrative statements should be explicitly responsive to the evaluation criteria (section 6.1) and the RFA guidance in general.

Your proposal should identify needs and/or problems specific to your community and business, https://apply07.grants.gov/apply/forms/readonly/Project_AbstractSummary-V1.1.pdf https://apply07.grants.gov/apply/forms/readonly/Project_AbstractSummary-V1.1.pdf https://www.ams.usda.gov/sites/default/files/media/2023RFSPNarrativeForm.docx https://www.ams.usda.gov/sites/default/files/media/LocalMCap_ProjectNarrative_Expansion.docx https://www.ams.usda.gov/sites/default/files/media/LocalMCap_ProjectNarrative_Expansion.docx

18 | P a g e including details such as estimates of unmet processing needs, new market opportunities, barriers to business growth, and how your proposal will address those needs.

Your narrative should also describe current facility capacity and business activities, including how long you have been in business, your current gross annual revenue, the number of head you process annually, the number of employees you employ (full-time and part-time), and projected expansion of processing capacity (by head and/or by numbers of employees) and revenue growth for your business.

You must include a realistic implementation timeline and milestones. Consider key factors which will impact activities, capability to manage the proposed project, and commitment to continue enhanced or expanded processing activities after the grant period. Additionally, the narrative should explain plans to procure animals and provide producer opportunities relative to the existing processing establishments in your area, articulate price transparency, producer profitability, and value-added production as well as relevant commitments from producers, or consumers, end users, and potential buyers. For rendering applications, capacity should be in pounds or other relevant measure, and project narrative should describe the benefits to local processors and livestock producers. Make sure that your project narrative also describes community impact and support, and you document this through the inclusion of at least one letter of support from State, local, or Tribal leadership.

Your project narrative should be detailed and specific to your business and community.

The project narrative must be typed and single-spaced in an 11-point font and must not exceed fifteen

(15) 8.5 x 11 pages (excluding pre-existing template content). For example, if the template is 15 pages before you begin entering your project narrative information, your template may be up to 30 pages in length when completed (15 original pages + 15 pages of applicant content).

DO NOT modify the margins of the Project Narrative Template. Applicants must submit the Project Narrative Template as a PDF and attached to the Grants.gov application package using the “Project Narrative Attachment Form”.

5.2.5 MATCHING FUNDS AND LETTERS OF VERIFICATION – PROCESSING EXPANSION

PROJECTS

Required for Processing Expansion Projects ONLY. Each application must include written verification of match commitments from any party, including the applicant, who will contribute cash or in-kind matching from non-Federal resources to the project.

Submit one match verification letter for EACH cash or in-kind resource signed by the matching organization.

AMS highly encourages you to use the Suggested Match Verification Template Letter on the grant program’s website. If you do not use this template or if you are an applicant submitting a match, your match verification document must minimally include the following:

• Project Applicant

• Project Title

• Cash Commitment per year (if applicable) and Total Cash Match https://www.ams.usda.gov/sites/default/files/media/VerificationofMatchingFundsTemplateLetter_Compliant.docx

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• In-kind Contribution per year (if applicable) and Total In-kind Match. Break down items into categories as applicable:

o Salaries (employee name, title, duties, pay rate/hr.