Business Builder Awards FAQs

The Southwest Regional Food Business Center has received many questions about post-harvest funding opportunities and how they can support small and mid-sized farms. Below are answers to the most frequently asked questions about the Business Builder Awards.

Read our blog about the awards, their objective and how to apply.

• Q: What does it mean that the awards are for post-harvest projects?

  The USDA's funding is focused on projects that take produce beyond the growing stage and help expand market opportunities through processing, packaging, or distribution. The awards cannot be used for crop production or changing crops, but they can support efforts like turning carrots into carrot juice, purchasing equipment for packaging, or enhancing distribution networks to get products to market. Projects should focus on increasing marketability, profitability, and competitiveness of the business’s products in the region.

• Q: Why are these awards specifically for post-harvest projects?

  The USDA identified a gap in its funding programs related to helping small and mid-sized farms expand their markets. While other programs support different aspects of agriculture, the Regional Food Business Centers were created to bridge this gap by focusing on post-harvest activities.

• Q: How can post-harvest funding benefit small farmers?

  These awards are intended to build infrastructure that supports multiple farmers rather than funding individual small farms directly. The goal is to develop regional processing, packaging, aggregation and distribution facilities that small farms can utilize, helping them focus on farming rather than marketing and logistics.

• Q: What funding is available for projects under $75,000?

  We have received approval to update the range of available awards to $60,000 - $100,000. Currently, we are not offering awards under $60,000. However, we encourage you to submit your application regardless of budget amount so we connect you with alternative grant and loan opportunities through other federal programs, local foundations, low-interest lenders, and other funders we are aware of.

• Q: How many awards will be given out each cycle?

  The number of awards depends on the size of the projects submitted and the amount of additional funding secured. The goal is to distribute as much funding as possible, but the process is fluid and dependent on applications received. We estimate 1-2 projects per cycle. 

• Q: What happens when I submit an application?

  Your application will be reviewed by a review committee to determine whether it qualifies for post-harvest funding. If your project meets the criteria, it will be sent for funding through USDA. Local First Arizona (if you choose this option) will look for other existing grant and loan opportunities that align with your request if your application is not funded or does not meet the criteria. Furthermore, Local First Arizona can use the total number of unfunded requests to seek additional funding for future cycles. 

• Q: Are the awards under $60,000 reimbursable like USDA funds?

  Currently, no award will be offered under $60,000. Proposals with budgets below $60,000 are still welcome; we will connect you with alternative grant and loan opportunities through other federal programs, local foundations, low-interest lenders, and other funders we are aware of.

• Q: Do I need anything besides a UEI number to apply?

  No, a UEI number is the only requirement at this stage. However, applicants may be contacted for additional discussions about their projects.

• Q: I can’t afford the upfront cost of the special equipment I need. Is there bridge lending available?

  Yes! Bridge loans are available for projects requiring significant initial investment. Should you require this assistance, please specify this in your application or contact us.

• Q: Are there other loans available that aren’t tied to the Business Builder Awards?

  Yes, standalone loans are available on a case-by-case basis. Local First Arizona also operates several microloan programs that are open year-round, such as the Green Loan Fund for sustainability projects and the Rooted Relative Fund for Indigenous entrepreneurs. Contact us to learn more. 

• Q: Can I receive more than $100,000 by applying for both USDA and supplemental funds?

  If applying through the Business Builder Awards, the total funding cap is $100,000 per applicant, regardless of the source of funds. The bridge loan must go towards budget items outlined in your application. 

• Q: What is the timeline for the loans offered through the Southwest Regional Food Business Center (SWRFBC)?

  All applications submitted through the SWRFBC will be reviewed at the same time. 

• Q: How can I get help navigating funding opportunities?

  Local First Arizona serves as an intermediary between farmers and federal programs, helping applicants navigate funding opportunities. If you have a project idea, reach out, and they will help determine the best funding path for you.

• Q: Can I receive grant writing assistance through the Southwest Regional Food Business Center?

  Because of federal funding restrictions, we cannot write the application for you. However, application technical assistance is available from Local First Arizona staff. This includes walking through application questions, reading your application, providing suggestions, etc. 

• Q: Can I use these awards for construction projects?

  For Business Builder awards, minor improvements, rearrangements, or alterations of an existing building or facility to accommodate new or upgraded special purpose equipment are allowable if they do not involve ground disturbing activities (see Program Specific Terms & Conditions). Building related materials and labor are allowable if they are needed for the special purpose equipment. Center funds may not be used for construction or property acquisition. This extends to additions, improvements, renovations, or alterations of an existing building or facility as well as any construction materials or associated costs.

• Q: Can I use these awards for rental costs of land or buildings?

  Allowable for rental costs of land and building space. However, lease agreements to own (i.e., lease-to-own or rent-to-own) are not allowable. The lease or rental agreement must terminate at the end of the award cycle. A building is any permanent structure designed or intended for support, enclosure, shelter, or protection of people, animals, or property, and having a permanent roof supported by columns or walls.

• Q: Can I use these awards to cover architectural designs for my project?

  Architectural design services cannot be paid for by RFBC program funding. However, USDA AMS offers architectural design technical assistance at no cost. For more information, visit our facility design webpage.

• Q: Can I use these awards to purchase land or a building?

  No. 

• Q: Can I use these awards to purchase a tractor or similar equipment?

  No. The RFBC Program generally allows special purpose equipment purchases that support producer access to new markets and/or benefit local and regional supply chains. Special purpose equipment purchases may support (but is not limited to):

  Transportation (purchase, rental, or lease of a vehicle), processing, aggregation, or storage investments;

  Value chain/supply chain innovation or upgrades, including equipment or technology upgrades or investments to support process adaptations; 

  Product development, packaging, and marketing of agricultural products.

For additional details or assistance, contact Local First Arizona directly at swrfbc@localfirstaz.com