FY2023 VAPG Application Toolkit_Working Capital.docx

Value-Added Producer Grant 2023 Working Capital Grant Toolkit

Table of Contents

APPENDIX A Tribes and Tribal Entities………………………………………...………………………………

VALUE-ADDED PRODUCER GRANT

WORKING CAPITAL APPLICATION

PROGRAM OVERVIEW

The purpose of the Value-Added Producer Grant (VAPG) Program is to help U.S. agricultural producers enter into value-added activities. Awards may be made for either economic planning or working capital activities related to the processing and/or marketing of valued-added agricultural products. The maximum grant amount for a planning grant is $75,000 and the maximum grant amount for a working capital grant is $250,000. Please see the Notice published on March 17, 2023 in the Federal Register.

DOCUMENT PURPOSE

The purpose of this Application Toolkit is to assist eligible applicants in navigating through the program requirements as detailed in the Notice and the Final Rule 7 CFR part 4284 subpart J, published May 8, 2015 and ensure a complete application submission of all required details and documents for WORKING CAPITAL grant proposals. While this Application Toolkit is not required, applicants are highly encouraged to utilize this as a tool.

REQUIRED STANDARD FORMS

Please visit Grants.gov for the family of Standard SF forms and instructions here.

List of required forms:

SF-424 Application for Federal Assistance SF-424A Budget Information for Non-Construction Programs

OPTIONAL FORM

Form AD-2106, “Form to Assist in Assessment of USDA Compliance with Civil Rights Laws”

IMPORTANT APPLICATION RESOURCES

VAPG Program Regulation 7 CFR 4284 subpart J or PDF Version VAPG Notice Published on March 17, 2023 SAM Registration or evidence of having begun registration process. Register at no charge Alcohol and Tobacco Tax and Trade Bureau (TTB) For projects related to alcoholic beverages Agricultural Marketing Service’s Hemp Production Program Regulation For projects related to hemp USDA is an equal opportunity provider, employer, and lender

APPLICATION TEMPLATE

Section 1: Summary Information Legal Name of Applicant Entity: _________________________________________________________ Unique Entity Identifier (UEI) # ______________________Employer Identification Number (EIN) _______________ SAM Registration Expiration Date: ____________ If you have not yet received your registration confirmation and expiration date, you must provide evidence from SAM of having begun the registration process (please include documentation in Appendix B).

Applicant Type – Please Check One:

☐ Independent Producer ☐ Agricultural Producer Group ☐ Farmer or Rancher Cooperative ☐ Majority-Controlled Producer Based Business

Raw Agricultural Commodity: _____________________________________________________ Value-Added Product: ___________________________________________________________ Purpose ☐Working Capital Grant Requested Grant Amount ($250,000 or less): $_________________

Proposed Grant Period Start Date: ___________Proposed Grant Period End Date: _____________ Proposed dates should correspond with grant period date included in SF424 and Section 5.4(2) (a) of the template.

Check if you are eligible for Reserved Funds in one of the following categories, per 7 CFR 4284.923.

(Information from Appendices E.1, E.3, or E.4 will be used to rank applications awarded from Reserved Funds).

☐ Beginning Farmer or Rancher ☐ Socially-Disadvantaged Farmer or Rancher ☐ Mid-Tier Value Chain Project ☐ NOT APPLICABLE – I am not requesting Reserved Funds

Check one if you are competing for Priority Points (See 4284.902 and Appendix E for Definitions) in one of the priority categories below:

☐ Beginning Farmer or Rancher ☐ Veteran Farmer or Rancher ☐ Socially Disadvantaged Farmer or Rancher ☐ Operator of a Small- or Medium-Sized Family Farm ☐ Farmer or Rancher Cooperative ☐ Mid-Tier Value Chain Project ☐ NOT APPLICABLE – I am not requesting Priority Points

☐ Priority Points for Group Applicants: Check the box if you are an Agricultural Producer Group, Farmer or Rancher Cooperative, or Majority Controlled Producer-Based Business AND you are applying for Priority Points as an applicant that “best contributes” to creating or increasing marketing opportunities for one or more of the priority categories above.

Name & Affiliation of Grant Writer Who Prepared This Application Name ________________________________________________________ Affiliation _____________________________________________________ Note: Grant and Matching Funds may not be used to support costs for services or goods going to, or coming from, a person or entity with a real or apparent Conflict of Interest in which a person or entity has competing personal, professional, or financial interests that make it difficult for the person or business to act impartially.

Section 2: Executive Summary of Project [Insert a description of your project containing the following information: 1) legal name of applicant entity, 2) application type (planning or working capital), 3) applicant type, 4) amount of grant request, 5) a summary of your project, 6) project goals and 7) how you intend to use the grant funds. Limit one page.] Section 3: General Eligibility Requirements Use 7 CFR 4284.920 and 921, the definitions at 902 and the Federal Register Notice to address this section. All Applicants must certify the following by reading and checking the following statements and including any requested documentation, within the body of the application or in the appropriate Appendix, as directed:

3.1 Citizenship

☐ I am an Individual Applicant who is a citizen or national of the United States, the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, or American Samoa; or I reside in the United States after legal admittance for permanent residence.

OR

☐ I am an Applicant Entity that is at least 51 percent owned by individuals who are either citizens or nationals of the United States, the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, or American Samoa; or are legally admitted permanent residents residing in the United States.

3.2 Legal Responsibility and Authority

☐ I have legal authority to carry out the purpose of the grant, and my business is in good standing in the State where it is incorporated and/or in the State that is the primary location of my business operations for the VAPG project (Tribes and tribal entities should refer to Appendix A for guidance on eligibility).

☐ In Appendix B, I have attached a copy of, or excerpt from my organizational documents showing legal authority to carry out the purpose of the grant on behalf of my business, along with a Certificate of Good Standing or letter from a State agency or equivalent authority. If I am the only owner of my business (or the representative of a steering committee) I have included a copy of my IRS tax forms showing farm income/loss (Tribes and tribal entities should refer to Appendix A for guidance on eligibility).

3.3 Multiple Grant Eligibility (check all that apply) refer to 4284.920 ☐ I am requesting only Working Capital funds and have not previously received a Working Capital grant in any prior year.

☐ I am requesting only Working Capital funds and have received a Working Capital grant in a prior year. Working Capital grant funds received in prior years were not for this same project proposal; and the products and/or markets proposed do not represent extensions of previously funded projects.

[Describe the prior Working Capital Project(s) awarded and how they differ from this project here, limit one page] Certification regarding multiple grant submissions this application cycle (Required Certification):

☐ I am submitting only one application in response to this solicitation, including separate, but related, applicant entities with greater than 75 percent common ownership or from a parent, subsidiary or affiliated organization.

3.4 Currently Active VAPG Grant (check only one box) refer to 4284.920 ☐ I DO NOT have a currently active VAPG grant with unused funds.

☐ I DO have a currently active VAPG grant with unused funds.

Scheduled completion date of currently active VAPG grant:

Click here to enter a date.

3.5 No Current Outstanding Federal Judgments or Delinquencies on Federal Taxes refer to 4284.921 I, [INSERT NAME OF APPLICANT], _______________________________________________________, certify that the United States has not obtained an unsatisfied judgment against my property and will not use grant funds to pay any judgments obtained by the United States.

I, [INSERT NAME OF APPLICANT], _______________________________________________________, also certify that I am not delinquent on payment of Federal Income Taxes or any Federal Debt.

3.6 Compliance with Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations.

☐ I DO currently have an alcohol license/permit that meets TTB requirements.

☐ I DO NOT have an alcohol license/permit that meets TTB requirements.

☐ I DO NOT have an alcohol license/permit that meets TTB requirements, however I have begun the application process. I submitted my alcohol permit/ license application to TTB on [Write or type date] or Click here to enter a date.

☐ NOT APPLICABLE as this is not an Alcohol related project.

Entities should also refer to Appendix F for guidance on alcohol project related eligibility requirements.

3.7 Compliance with Agricultural Marketing Service’s (AMS) Hemp Production program regulations.

All hemp producers must comply with AMS regulations.

☐ I DO currently have a hemp producer license issued from an approved State, Tribal or Federal plan.

☐ I DO NOT have a hemp producer license issued from an approved State, Tribal or Federal plan.

☐ NOT APPLICABLE as this is not a hemp related project.

Entities should also refer to Appendix G for guidance on hemp project related eligibility requirements.

Section 4: Applicant Eligibility Use 7 CFR 4284.920 and 921, the definitions at 902 and the Federal Register Notice to address this section. All applicants must provide the requested information within the body of the application or in the appropriate Appendix, as directed. Tribes and tribal entities should also refer to Appendix A for guidance on eligibility requirements.

4.1 All Applicants must acknowledge and agree to the following by checking each.

☐I/We grow/raise the subject agricultural commodities through participation in the day-to-day labor, management, and field operations; or I have harvesting rights to a non-cultivated agricultural commodity (examples: timber, wild-caught fish) that is the subject of the VAPG project (see the definition of Agricultural Producer at 4284.902).

☐I/We currently grow/raise and own the majority (more than 50 percent) of the subject raw agricultural commodity to which value will be added in this project.

☐I/We do not grow/raise the subject agricultural commodity under contract for another entity, nor contract out the production of the subject agricultural commodity to another entity.

☐I/We will maintain ownership of the subject agricultural commodity from its raw state through the production, marketing and sale of the value-added product during the grant funding period (except for qualifying Mid-Tier Value Chain (MTVC) projects).

4.2 Applicant Type

Please address eligibility requirements for ONLY ONE applicant type (a), (b), (c) or (d) below. In addition, each Applicant Type must provide the names for the Director/Executive Director and any person(s) who will be handling Federal funds.

[List names of Director/Executive Director(s) and person(s) handing Federal funds here]

(a) ☐ Independent Producer See definitions for Independent Producer and Agricultural Producer at 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information.

☐I am an eligible Independent Agricultural Producer and am the only owner of my business.

Describe your involvement in day-to-day production of the raw commodity and how you meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of your day-to-day involvement in labor, management, and field operations]

OR

☐ There are multiple owners of my business and 100 percent of them are eligible individual Agricultural Producers, or entities that are solely owned and controlled by Agricultural Producers, who produce an Agricultural Commodity through participation in the day-to-day labor, management, and field operations; or are owners or members who have the legal right to access and harvest the agricultural commodity to which value will be added (Additional verification may be required upon award).

1) List names of all owners or members of the “Independent Producer” applicant organization and their individual percentage of ownership/membership. For each owner/member describe their role in day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

(Note: Tribes and tribal entities should include tribal enrollment data (number of enrolled members) along with a brief narrative description of the tribal entity or tribal members that will be directly involved in the production of the primary agricultural commodity. (See appendix A for guidance) [Insert description of the tribal entity or tribal members day-to-day involvement in labor, management, and field operations]

b) For each member of the steering committee describe their role in day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

3) Is the Applicant a harvester (as found in the definition of Independent Producer at 7 CFR 4284.902)?

☐Yes ☐ No (Examples include but are not limited to: A logger who has a legal right to access and harvest logs from the forest that are then converted into boards; a fisherman who has the legal right to access and harvest fish from the ocean or river that are then processed. This category is not applicable for cultivated farm commodities).

a) If yes, do you certify that you have the legal right to access and harvest 51 percent or more of the agricultural commodity that will be used for the value-added product, and are currently engaged in harvesting the subject agricultural commodity? ☐Yes ☐No

b) Summarize the harvesting rights and operation:

[Insert summary] (A copy of, or reference to, written contracts, rights-of-way, Memorandums of Understanding, license, or other documentation establishing “legal rights” to access and harvest the subject agricultural commodity must be provided upon award) NOTE: Agricultural harvesters are NOT individuals or entities who glean, gather, or collect only residual commodities (such as ‘slash in a forest or blemished fruit in an orchard) that result from an initial harvesting or production of a primary agricultural commodity. To be eligible, the agricultural harvester must harvest the primary agricultural commodity. This category is not applicable for cultivated farm commodities.

c) For each owner/member describe their role in day-to-day harvesting of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

(b) ☐Agricultural Producer Group See definitions at 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information.

☐We are a formal, non-profit, membership organization that represents Independent Producers; and operates with a mission that includes working on behalf of Independent Producers.

☐The majority (more than 50 percent) of the membership and board of directors is made up of Independent Producers who are eligible individual Agricultural Producers, or entities that are solely owned and controlled by eligible Agricultural Producers and are directly engaged in the production of the agricultural commodity to which value will be added for this project.

1) What is your total number of members? ________________

What is your total number of members that are eligible Independent Producers? _______________*

*Of this number, what is the total number that will participate in the project? _____________

2) What is the total number of individuals on the governing board? ________________

What is the total number of individuals on the governing board who are eligible Independent Producers? _______________

4) In Appendix B, please attach your articles of incorporation or other evidence of your non-profit status.

5) Insert your organization’s mission statement:

[Insert mission statement]

6) Identify by name or class (general description of type of producer) the members who will participate in the project.

[Insert list or identify class]

7) Describe the role of the Independent Producers (individually, if named above or generally, if named by class) in the day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

(c) ☐Farmer or Rancher Cooperative See definitions in 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information.

NOTE: Cooperatives owned and controlled by agricultural harvesters (i.e. fishermen, loggers, etc.) are eligible to apply only as an Independent Producer applicant and not as a Farmer or Rancher Cooperative. Harvester applicants must complete the information for IP in section 4.1(a) above.

1. ☐ Applicant certifies that it is a business owned and controlled by eligible Independent Producers that is either:

☐ LEGALLY INCORPORATED as a Farmer or Rancher COOPERATIVE State where Incorporated: _____________

OR

☐IDENTIFIED by the State in which it operates as a Farmer or Rancher owned and cooperatively operated business in the State of: ________________

1. What is the percentage of total ownership shares owned by Independent Producers? _____________

1. How many eligible Independent Producer owner/members will participate in the value-added project? _____________

1. ☐The owner/members, or class, identified below are those Independent Producers on whose behalf the project work will be done and each owner/member, or class of producer, are eligible Independent Producers, in accordance with the definition at 7 CFR 4284.902.

1. List participating owner/member Independent Producers by name or class (general description of type of producer). Additional verification of the status and participation of these parties may be requested.

[Insert list or identify class]

1. Describe the role of the Independent Producers (individually, if named above or generally, if named by class) in the day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of each owner/members day-to-day involvement in labor, management, and field operations]

(d) ☐ Majority Controlled Producer-Based Business See definitions in 7 CFR 4284.902. Acknowledge that you meet the following requirements by checking the appropriate boxes and providing the requested information. Note: Cooperatives should not apply in this category.

1. ☐We are a legal entity in which more than 50 percent of the financial ownership and voting control is held by eligible individual Independent Producers or held by an entity/entities solely owned and controlled by agricultural producers, and we are directly engaged in the production of the agricultural commodity to which value will be added for project.

☐The owners identified below comprise 100 percent of the ownership of the organization, including both Independent Producer owners and owners that are not Independent Producers. If any owners are entities themselves, the ownership of those entities is also identified, by name or class (general description of agricultural product or type of producer) and confirmed as eligible. Additional verification of the status and participation of these parties may be requested.

1. Provide a list by name of all owners, their percentage of financial ownership of the organization, their percentage of voting control of the organization, and whether they are an eligible Independent Producer.

[Insert list and explanation]

1. Describe the role of the Independent Producers (individually, if named above or generally, if named by class) in the day-to-day production of the raw commodity and how they meet the definition of Agricultural Producer in the program regulation at 4284.902:

[Insert description of your day-to-day involvement in labor, management, and field operations]

4.3 Raw Commodity Committed to the Project refer to 4284.922 (b)(7) All applicants for working capital grants must list the quantity of each agricultural commodity that will be used for the Value-Added Agricultural Product, as specified below. List only those in which you produce more than 50 percent of the amount needed for the project. The quantity of the agricultural product must be in an appropriate unit of measure, such as pounds, bushels, tons, head, etc. (do not use acreage), to demonstrate the scale of the agricultural project.

Estimated total quantity of each Agricultural Commodity needed for the VAPG Project (pounds, bushels, tons, head, etc.).

Estimated quantity of each Agricultural Commodity that will be produced by the Independent Producer owners of the applicant organization for the project. Do not include commodities for which you produce less than 50 percent of the required amount.

Estimated quantity of the Agricultural Commodity that will be purchased or donated from third-party sources. Include only the balance of the raw commodity (less than 50 percent) of the commodities named above

Percentage of total quantity of the Agricultural Commodity contributed to the project by the Independent Producer owners must be more than 50 percent: (Take the Independent Producer owner quantity amount and divide it by the total project quantity amount)

Section 5: Project Eligibility You must detail how the project meets product, and purpose, and reserved funds and priority points (if applicable) eligibility requirements in 7 CFR 4284.922 and in the current Notice. All applicants must provide the requested information within the body of the application or in the appropriate Appendix, as directed.

You must address all sections below.

5.1 Raw Agricultural Commodity and Outcome Value-Added Product Name the raw agricultural commodity that will be used as the input for the project:

☐ I certify that the majority of the raw agricultural product that will be used as the input for the project was produced in the United States including the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands, or American Samoa).

Name the value-added product that will be the outcome from using one of the five value-added methodologies: ________________________________________________________________________

5.2 Value-Added Agricultural Product Methodology

(7 CFR 4284.922(a)) Based on the definitions in 7 CFR 4284.902, choose the value-added methodology below that BEST fits your proposed value-added product(s) and explain the method or process used for only one value-added methodology type (a), (b), (c), (d), or (e) below.

a) ☐Change in Physical State Examples include, but are not limited to, strawberries into jam, milk into cheese, wheat into flour, wool into clothing or rugs, livestock into packaged meat.

Explain the method or process used to add value to your agricultural product, and how the change in physical state or form of the product enhances its value.

[Insert explanation]

b) ☐Produced in a Manner that Enhances the Value of the Agricultural Commodity Examples include, but are not limited to, organic carrots, eggs produced from free-range chickens.

Explain the method or process used to add value to your agricultural product, and how a non-standard agricultural production method adds value to the agricultural commodity per unit of production over a standard production method and provide evidence via a quantifiable comparison with products produced in the standard manner.

[Insert explanation]

c) ☐Physical Segregation An example is genetically modified corn that is separated from non-genetically modified corn on the farm during production and harvesting, with continued separation from similar commodities or products during the processing and marketing of the value-added product.

Explain the method or process used to add value to your agricultural product and demonstrate how the physical segregation of the commodity is accomplished and how it enhances the value of the commodity.

[Insert explanation]

d) ☐Farm- or Ranch-based Renewable Energy Examples include, but are not limited to, dairy manure into methane and electricity generated on the farm, or corn into biodiesel generated on the farm. Generation of energy from wind, solar, geothermal or hydro sources are not eligible. Fuel or energy that is not generated on a farm or ranch owned or leased by the Independent Producer applicant is not eligible under this methodology but may be considered under ‘change in physical state’.

Describe the renewable energy technology that will be used on-farm and explain the process to generate on-farm renewable energy from the agricultural commodity produced by the Independent Producer applicant. Demonstrate that the generated renewable energy will result in expansion of customer base and increased returns to the producer*.

[Insert explanation] *For Farm- or Ranch-based Renewable Energy, documentation for expansion of customer base must include sales of on-farm generated renewable energy to off-farm customers; and/or the use of the generated renewable energy to produce another value-added product, the sales of which will expand customer base. An example is the use of the generated energy to power a greenhouse or a dairy operation from which value-added products will be produced. As applicable, emerging market requirements must be met.

e) ☐Locally-Produced Agricultural Food Product Examples include, but are not limited to, specific local grapes with characteristics attributable to the growing area will be sold to a processor that will produce a locally-marketed wine; or local corn advertised and sold at a premium as a fresher locally-produced alternative to non-local produce. (100 percent of the Agricultural Food Product will be marketed and distributed within 400 miles of the farm that produced the commodity, or within the same state as that farm.)

Explain how value is added to your agricultural product and demonstrate/quantify how local sales and marketing results in added value to the product.

[Insert explanation]

5.3 Expansion of Customer Base and Increased Revenue Derived from the Value-Added Process.

You must cite one or more relevant sources to support the response statements and data below. Responses must be supported by project-specific analysis, such as a feasibility study, marketing plan, or business plan developed for the project and included with this application; or, for working capital applications that do not require submission of a feasibility study or business plan, responses must identify a relevant authority source or independent basis for the response data provided. Attach third-party supporting documentation to Appendix C.

1. Discuss the estimated expansion of customer base resulting from the value-added product, including a baseline of current customers for the commodity or value-added product, and an estimated target number of customers that will result from the project:

[Insert discussion]

1. Discuss the estimated amount of the increased revenue resulting value-added product that will be available to the applicant’s producers of the agricultural commodity, including a baseline of current revenues from the sale of the agricultural commodity or value-added product, and an estimated target number of increased revenues that will result from the project:

[Insert discussion]

1. Per the Agriculture Improvement Act of 2018, working capital applicants must include a description of the direct or indirect producer or food business benefits intended by the eligible entity to result from the proposed project within a reasonable period of time after the receipt of a grant.

[Insert discussion]

5.4 Purpose Eligibility and Use of Funds (See 7 CFR 4284.922 (b) and 7 CFR 4284.925 and .926) Check all boxes that apply and include the documentation indicated.

1. Use of Funds Applicant understands and agrees that:

☐ Working Capital funds will only be used to pay eligible project operational costs directly related to the processing and/or marketing of a value-added agricultural product. See 7 CFR 4284.925 for examples of eligible Working Capital activities.

☐The proposed project does NOT include costs for ineligible activities, as illustrated at 7 CFR 4284.926.

☐The project does NOT include costs associated with a conflict of interest for owners, employees, officers, agents, or their immediate family members having a personal, professional, financial or other interest in the outcome of the project, including organizational conflicts, or conflicts that restrict open and free competition for unrestrained trade; except as provided for in 7 CFR 4284.925 (a) and (b) relating to applicant or family member in-kind contribution of matching funds for eligible activities, and limited to 25 percent of total project costs.

Applications that propose ineligible expenses of more than 10 percent of Total Project Costs will be deemed ineligible to compete for funds. Applications containing ineligible expenses totaling less than 10 percent of Total Project Costs must remove those expenses from the project budget or replace with eligible expenses, if selected for an award. See 4284.922(b)(4).

1. Type of Working Capital Application Except as noted in 7 CFR 4284.922 (b) (6) (i and ii), working capital applications must include an independent feasibility study and business plan completed specifically for the proposed value-added project prepared by a Qualified Consultant. The Agency will use this information to determine whether the project is financially feasible. These documents will also be provided to reviewers during the scoring process to determine that they support a successful outcome. Applications with an inadequate feasibility study and/or business plan, found not financially feasible by the Agency will not be eligible to compete for grant funding. The Agency must concur with the acceptability or adequacy of the feasibility study and business plan for eligibility purposes.

You must respond to ONLY ONE of the following three categories:

☐i) EMERGING MARKET: Required for any Agricultural Producer Group, Farmer or Rancher Cooperative, or Majority Controlled Producer-Based Business Venture seeking a Working Capital Grant of $50,000 or more. Optional for Independent Producer applicants seeking a Working Capital Grant of $50,000 or more. Emerging Market applications must convincingly demonstrate that grant and matching funds focus on a new product and/or new geographic or demographic markets.

☐ I/We have not supplied the proposed product, geographic or demographic market for more than two years at time of application submission.

☐ I/We have included complete copies of a third-party, project-specific feasibility study and business plan related to the processing and/or marketing of my value-added product in Appendix C. This grant project proposes to implement the venture as outlined in the feasibility study and business plan documents.

Name of Qualified Consultant who completed the feasibility study: ____________________________ Date the feasibility study was completed: ________________ Name of person who completed the business plan: ________________________________________ Date the business plan was completed: __________________ Note: Grant and Matching Funds may not be used to support costs for services or goods going to, or coming from, a person or entity with a real or apparent Conflict of Interest in which a person or entity has competing personal, professional, or financial interests that make it difficult for the person or business to act impartially.

[Insert a summary description of your new product and/or markets and summarize the results of your feasibility study and marketing plan].

☐ii) MARKET EXPANSION: INDEPENDENT PRODUCER applicant seeking a Working Capital Grant of $50,000 OR MORE. Market expansion applications must convincingly demonstrate that grant and matching funds focus on supporting sales to new customers, with a resulting expansion in customer base and revenue returned to producers. Market expansion applicants can demonstrate that the focus is on new customers by including:

☐ I am an Independent Producer (IP) applicant seeking a working capital grant of $50,000 or more for a market expansion project for an existing value-added product that I have produced and successfully marketed for at least two years at time of application submission; date value-added product first marketed for sale:

Click here to enter a date.

☐ In lieu of an independent feasibility study for this project, I am submitting a business or marketing plan for the value-added project (included in Appendix C).

Name of person who completed the business or marketing plan: ____________________________________ Date the business or marketing plan was completed: ____________________ ☐ I understand that submission of a business or marketing plan in lieu of a feasibility study does not change the proposal evaluation or scoring elements.

☐ I must demonstrate how the project will result in an expanded market to new customers.

☐ I understand that I must also demonstrate the expected increases in customer base and revenue returns to the producer applicants supplying the majority of the agricultural commodity for the project in Section 5.3.

[Insert Summary of your history of producing and marketing the subject value-added product and summarize the results of your business or marketing plan. Include in your summary the date you first started producing and marketing the value-added product and the viability of the project to date. Discuss the expanded markets you intend to reach as a result of the subject Value-Added Producer Grant and how these are new customers that have not been previously marketed for the subject value-added product.]

☐ iii) SIMPLIFIED APPLICATION: ALL APPLICANT TYPES submitting a Working Capital Grant application (emerging market or market expansion) of LESS THAN $50,000:

☐ I am applying for a working capital grant of less than $50,000 and understand that I am not required to provide a feasibility study and business plan. I understand that this does not change the proposal evaluation or scoring elements and that I must demonstrate the expected increases in customer base and revenue returns to the producer applicants supplying the majority of the agricultural commodity for the project in Section 5.3.

1. Work Plan and Budget You must provide a detailed work plan and budget below that shows how the project’s goals will be accomplished per the requirements in 7 CFR 4284.922 (b) (5), including a narrative description of the eligible activities and the tasks associated with those activities; a detailed budget breakdown of the estimated costs allocated to those activities and tasks; identification of the key personnel responsible for each of the activities and tasks; timeframes for completion of the activities and tasks; identification of the sources and uses of grant and matching funds for all activities and tasks; and a grant period that meets start and end date requirements (See Grant Period Eligibility, below). Please note that information provided in section 5.4(3) b, c, and d will also be scored as part of Section 6.2 Proposal Evaluation Criterion 6.2(4).

a. Grant Period Eligibility Your project timeframe or grant period can be a maximum of 36 months in length from the date of award, depending on the complexity of your project. Your proposed grant period should begin no earlier than the anticipated award announcement date in this Notice and should end no later than 36 months following that date. If you receive an award, your grant period will be revised to begin on the actual date of award—the date the grant agreement is executed by the Agency—and your grant period end date will be adjusted accordingly. Your project activities should begin within 90 days of that date of award. The length of your grant period should be based on your project’s complexity, as indicated in your application work plan.

[Insert proposed grant period start and end dates]

b. Insert Work Plan narrative here (upload additional pages as needed):

[Insert work plan narrative]

c. Project Budget Summary

Summarize the total project budget by task. Insert additional rows as needed. Budget requires a 1:1 cost-share match of at least $1 for every $1 in grant funds.

TOTAL PROJECT

d. Task Budget Format You must provide a budget table for each task that will be completed for each main activity listed above and include a detailed explanation/clarification for each task budget, including the basis for the valuation (unit cost and source, such as vendor quote, documented historical cost, etc.) for each budget line item.

Edit budget categories and add additional task tables as needed.

Activity #1 Task Breakdown Example Budget Categories

VAPG

Grant Funds Cash Matching Funds In-Kind Contributions Total

Personnel

Fringe Benefits

Travel

Office Equipment

Supplies

Contractual

Other (specify)

Other (specify)

[Insert task budget breakdown, explanation, and basis for valuation here] Program Income: If income (Program Income) is earned during the grant period as a result of the project activities, it is subject to the requirements in 2 CFR 200.307 and must be managed and reported accordingly. Program Income means gross income earned by the grantee that is directly generated by a supported activity or earned because of the grant, including, but not limited to income from the sale of commodities or products produced under the grant. Production and related costs may be deducted from gross income to determine Program Income, provided as long as these costs have not been charged to the grant. If you receive an award, your USDA servicing office will discuss your options regarding utilization of Program Income. Your application must include an estimate of Program Income expected to be earned during the grant period. Further quantification of Program Income and its projected-use will be confirmed by applicants selected to receive grant funding and will be subject to Agency approval in a final budget post-award. Do not use projected Program Income as match as it cannot be verified:

Section 6: Evaluation Criteria

6.1 Performance Evaluation Criteria

(7 CFR 4284.931 (b) (2) (i)) Applicants must provide specific information about plans to track and evaluate progress toward these outcomes as a way for the Agency to ascertain whether the primary program goals and project goals proposed in the work plan are likely to be accomplished during the project period.

1) How many jobs are expected to be created or saved resulting from the project?

Number of jobs expected to be created _______ or saved ________ Please discuss how the project will create or save jobs:

[Insert discussion] Jobs Created – Jobs created refers to the jobs created by the VAPG applicant that are directly related to, a result of, and attributed to the VAPG project funded by RBS. Jobs created are generally located at the project site.

Jobs Saved – Jobs saved refers to existing jobs (in terms of FTEs) where it can be documented that without VAPG project funding, the jobs would have been lost. Not all existing jobs are jobs saved.

Count 2 part-time jobs as 1 full-time job and count 3 seasonal jobs as 1 full-time job. If part-time and/or seasonal jobs add up to a fraction, round up to the next whole number. If no jobs are created or saved, enter a zero.

The following is an example of calculating jobs:

4 permanent employees working 40 or more hours/week 4 employees x 1 FTE each =4 FTEs 4 long-term temporary employees working 35 hours/week 4 employees x 1 FTE each =4 FTEs 8 Seasonal employees working 40 hours/ week for 3 months 8 employees x 1 FTE each x ¼ year =2 FTEs 8 short-term employees working 20 hours/week for 4-month term 8 employees x ½ FTE each x 1/3 year = 1.33, rounded up = 2 FTEs Total jobs =12 FTEs/Jobs

2) From Section 5.3, please enter the following:

a) Current baseline of customers___________

b) Anticipated expansion of customer base resulting from the project___________

c) Current baseline of revenue to producers __________________

d) Anticipated increase in revenue to producers resulting from the project _______________

3) Provide at least one performance evaluation criterion for your grant project be evaluated by, if awarded funds.

Applicants are invited to suggest additional benchmarks for evaluation that are specific to proposed project activities or outcomes and the corresponding timeframes for accomplishing them; these should be informed by the program objectives, stated above, related to new markets, expansion of customer base, and revenues returning to producer Applicants; as well as to the practical and/or logistical activities and tasks to be accomplished during the project period. The required data, including accomplishments as outlined in § 4284.960 and Applicant-suggested performance criteria, will be incorporated into the Applicant's semi-annual and final reporting requirements if selected for award, and will be specified in the grant agreement associated with each award.

Examples of Performance Evaluation Criteria for Working Capital Grants:

· Is the project serving the targeted customer market described in the business plan?

· Has the project realized the expected commitments from new customers?

· Has the project realized the expected increase in revenues for its agricultural producers?

[Insert Working Capital Grant Performance Evaluation Criteria]

6.2 Proposal Evaluation Criteria

(see 7 CFR 4284.942(b) and NOSA section E. 1. to respond to each criterion) The Agency will rank and select applications for funding based on the scores for each proposal evaluation criterion. All applicants must provide the requested information within the body of the application. You must also summarize relevant portions of feasibility studies, business and/or marketing plans, or other third-party sources, as directed. For each criterion, you must demonstrate how the project has merit and provide rationale for the likelihood of success. Responses that do not address all aspects of the criterion in a meaningful way, or that do not convey relevant project information will receive lower scores.

1. Nature of the Proposed Venture (graduated score 0 - 30 points)

For the following sections you should reference project-specific feasibility studies, business and/or marketing plans, third-party data or previous business experience producing or marketing the value-added product or similar product, or experience in similar markets.

a) Describe the technological feasibility of the project (i.e. is the product currently being manufactured somewhere, what is the size constraint, is product in test phase versus full capacity, is recipe formulated, existing versus new technology, etc.). Include discussion of the value-added process; potential markets and distribution channels; the value to be added to the raw commodity through the value-added process; cost and availability of inputs, your experience in marketing the proposed or similar product; business financial statements; and any other relevant information that supports the viability of your project. Also reference expected increases in customer base and revenue returned to producers from Section 5.3.

b) Describe the operational efficiency of the project (i.e. sufficient raw commodity, use own facility or toll processing, share a processing space, energy efficiency aspects, waste management, sufficient labor or expertise, logistics for storage or distribution of value-added product, etc.).

c) Describe the expected profitability of the Working Capital project, utilizing pro forma financial projection summaries or other relevant sources of authority, cost and availability of inputs, cost of processing the commodity, etc.

d) Describe the economic sustainability of the project in terms of project viability post-grant period, whether the project will reach or exceed the break-even point post award, the potential for market expansion, and known risk factors, etc.

Working capital applicants should demonstrate that these outcomes will result from the project and include supportable projections of increase in customer base, revenue returned to producers and jobs resulting from the project to receive up to the maximum number of points.

Points will be awarded as follows: