Question: What types of farms and food businesses are eligible for Business Builder awards?
Answer: Business Builder awards support the growth and viability of small and mid-sized producers and food businesses along local and regional food supply chains, including agricultural producers, growers, processors, aggregators, and distributors, producers that supply local food systems, farmers markets, restaurants, and schools.
The program is inclusive of all types of products produced locally or regionally, and all types of market channels. This includes, but is not limited to, specialty crops, livestock, poultry, dairy, grains, fish, non-food revenue streams from by-products or co-products such as leathers, ornamentals, agritourism, etc.
Centers have their own definitions of small and mid-sized food and farm businesses eligible for Center programs and may identify additional priorities that align unique opportunities within the region.
Please visit your regional Center’s website for specific information about the regional Business Builder program. You can find links to each Center’s website and contact information, on the RFBC Awarded Center page of the Regional Food Business Center website.
Question: What types of business expenses or activities are allowable through the Business Builder award program?
Answer: The allowable costs of the RFBC program are fully detailed within the USDA AMS terms and conditions and Program Specific Terms and Conditions (pdf). These terms also apply to Business Builder awards. Centers are guided to support projects focused on meeting regional needs and increasing capacity among businesses working towards expansion. Centers’ prioritized investments must be shown to:
- Increase food and farm business revenue and improve financial acumen and overall viability;
- Create more, new, and better markets and increase market awareness and access;
- Increase the number of local producers that distributors, retailers and foodservice buyers source from, either directly or through intermediaries; and
- Support region-specific priorities identified by the Center.
Examples of allowable costs include: special purpose equipment (e.g. equipment necessary for food safety, transportation, processing, packaging, aggregation, or storage); business planning; software; personnel costs (not related to production); product development, packaging, and marketing.
Question: What types of business expenses or activities are not allowable through the Business Builder award program?
Answer: Within USDA AMS terms and conditions and RFBC program specific terms and conditions, there are activities and costs identified as explicitly unallowable. These include but are not limited to:
Farm, gardening, and production activities and supplies (including salaries, equipment or supplies associated with production activities); acquisition of buildings or land; construction; and general-purpose equipment. RFBC funds may not be used to provide capital for revolving loan funds or seed equity or for fundraising or investment costs. They may not be used to purchase food or services to donate to other entities and/ or individuals.
Question: How can I learn more about the Regional Food Business Center Business Builder awards available in my region?
Answer: As each Center offers a Business Builder program uniquely tailored to the opportunities and needs of the region, interested farms and businesses should contact their regional Center directly. Our National Intertribal Food Business Center also offers Business Builder awards to support resilient, diverse, and competitive food systems throughout Indian Country. This Center can support applicants that need to navigate the unique complexities of operating in Indian Country such as tribal jurisdiction, DOI leasing, tribal structures, etc. Contact information for each Center, along with a map demonstrating the regional coverage of each Center, can be found on the RFBC Awarded Center page of the Regional Food Business Center website. To learn about the status of each Center’s Business Builder program, visit the Business Builder Grant Status page on the RFBC website.
Question: What is a Unique Entity Identifier (UEI) number?
Answer: A Unique Entity Identifier (UEI) is a 12-digit official alphanumeric identifier issued upon request to any entity with a Taxpayer Identification Number. UEIs are issued by federal government via the Sam.gov system. Sam.gov is a federal online system for managing and monitoring federal contracts, grants, loans, and other agreements. UEIs may be issued to any type of enterprise including sole proprietorships, LLCs, non-profit organizations etc.
Entities requesting a UEI can elect whether to opt-in or opt-out of having their UEI viewable in public search. For those who opt out, only authenticated federal users and will be able to view the entity information on SAM.gov. Note that entity information marked as non-public can be obtained in Freedom of Information Act (FOIA) requests.
To obtain a UEI or learn more about the process, visit https://sam.gov/content/duns-uei.
Questions: Why is a Unique Entity Identifier (UEI) required to receive a Business Builder award?
Answer: The Office of Management and Budget (OMB) requires any entity receiving federal funds to have a Unique Entity Identifier (UEI). UEIs are used in the execution of federal awards (Grants, contracts, sub-awards, etc.) and enable the management and monitoring of federal awards and funding in accordance with the Federal Funding Accountability and Transparency Act (FFATA) and other federal regulations. The intent of FFATA is to empower every American with the ability to hold the government accountable for each spending decision. The end result is to reduce wasteful spending in the government (FSRS - Federal Funding Accountability and Transparency Act Subaward Reporting System.
Question: How does a farm, food business, or organization obtain a UEI?
Answer: Unique Entity Identifiers (UEI) are issued free of charge to any entity possessing a Taxpayer Identification Number. There are never any fees or payments associated with obtaining a UEI.
The UEI application process typically takes less than 20 minutes to complete, and a UEI is often received at the time of registration. To request a UEI, individuals or organizations must create an account (i.e. login) on the SAM.gov website. A SAM.gov account is different from what is known as a Sam.gov registration, which is a common point of confusion. Creating a SAM.gov account (i.e. login) is as simple as generating a username and password, which then allows a user to authenticate themselves and sign in to the site.
Once the SAM.gov username and password are created, individuals or organizations will need to sign in to their SAM.gov account and submit basic information on the business such as business name, address, state in which the business is incorporated, year business or organization was incorporated, taxpayer identification number.
Those requesting a UEI also elect whether to opt-in or opt-out of having the UEI viewable in public search. For those who opt out, only authenticated federal users and will be able to view the entity information on SAM.gov. Note that entity information marked as non-public can be obtained in Freedom of Information Act (FOIA) requests. To obtain a UEI or learn more about the process, visit https://sam.gov/content/duns-uei.
Question: How long does it typically take to receive a UEI once requested?
The UEI application process typically takes less than 20 minutes to complete, including creation of a SAM.gov account (i.e. username and password). UEIs are often received at the time of registration, though it can take up to 10 days.
Question: Are there any costs or fees associated with obtaining a Unique Entity Identifier (UEI)?
Answer: No. There are never any fees or payments associated with obtaining a Unique Entity Identifier (UEI). If you observe or suspect fraudulent activities on the part of any individual or entity related to federal funds, please report you concerns to the Government Accountability Office and their fraud prevention and reporting system.
Question: Do Business Builder award recipients need a SAM.Gov registration?
Answer: No. Creating a SAM.gov website account is different from what is known as a ‘SAM.gov registration’, though confusion of the two is understandable. The SAM.gov website is the portal used to request a Unique Entity Identifier (UEI), and that website requires users to create a user ID and password. This account creation is different from what is known as a “SAM.gov registration” which is a multi-tier federal registration process administered by the SAM.gov system.
To obtain a UEI or learn more about the process, visit the SAM website.
Question: Can an eligible farm or food business receive more than $100,000 in total Business Builder awards? For example, if a farm were to receive $50,000 in Year 1 of the program, $50,000 in Year 2 and another $50,000 in Year 3?
Answer: No, any single farm, food business, or other eligible entity can receive no more than $100,000 in Business Builder award dollars over the course of the current program cycle. There is, however, no limit to the amount of technical assistance any eligible entity may receive from the RFBC program, or from other funded initiatives.
Question: How are Business Builder award funds issued to recipients? Are advance payments allowable?
Answer: The standard method of payment for USDA AMS awards is reimbursement for incurred costs on a payment schedule set-forth in the individual award agreement. Centers may choose to issue advance payment to recipients in accordance with the USDA AMS terms and conditions (pdf) on a case-by-case basis. The decision to issue advance payments is at the discretion of each Center.
Question: Can Centers offer short-term financing (e.g. bridge loans or lines of credit) to their Business Builder recipients in lieu of advance payment?
Answer: No, Regional Food Business Center funds cannot be used to establish any form of revolving loan or lending program. Business Builder award recipients are free to pursue short-term funding they deem necessary or appropriate to support their ongoing business operations, and the decision to do so is made by the award recipient.
Question: How is the RFBC program ensuring equitable distribution of Business Builder funds?
Answer: Each Center’s Business Builder award program provides a pathway to federal funding with a lower barrier to entry than other federal award programs. Characteristics of the Business Builder award program that make it more accessible include smaller funding thresholds with reduced administrative burdens, simplified grant application processes, no match requirements, and opportunities for advance payments. Centers are also able to streamline Business Builder award applications and target awards to entities that receive pre-approved technical assistance from that Center.
Additionally, the Centers target investment in underserved and Tribal communities. Centers will consult with members of communities and organizations that serve communities that have been historically underrepresented. This effort will also reach communities that have been underserved or subject to discrimination in federal policies and programs. In addition to these consultations, Centers will gather data and conduct analyses that help measure and determine ways to advance equity. Ultimately, this work will address barriers to full participation in programming for historically underserved communities.
Each Center tailors their work plan, support service and outreach strategies for the underserved communities in their region. For information about specific geographic areas, contact the Center in your region.
Question: Can participants from other USDA technical assistance programs like Transition to Organic Partnership Program (TOPP) or Climate Smart Agriculture Technical Assistance (CSA TA) also pursue Business Builder Awards?
Answer: Yes, participants from other USDA technical assistance programs are eligible to apply for Business Builder awards from the Centers. While there is a $100,000 cumulative cap on any farm or business receiving a single or multiple Business Builder awards during the program period, this maximum is related only to the Business Builder awards. Other federal awards or funding to that farm or business do not count towards that maximum award, though all parties involved should ensure there are not duplicate costs or efforts. Leveraging and ‘stacking’ USDA programs is encouraged for sustaining the program’s impact.
Question: How is the RFBC Business Builder award program different than the Resilient Food Systems Infrastructure Program?
Answer: The Regional Food Business Centers’ Business Builder awards and Resilient Food Systems Infrastructure Program (RFSI) are complementary funding programs that support local and regional supply chain development. The RFSI program funds states and territories to make competitive subawards to expand aggregation, manufacturing, storing, transporting, wholesaling, and distribution capacity and infrastructure for domestic food and farm businesses. Between the two programs, there are differences in allowable products and activities, specifically business planning and value chain coordination. For more information on the differences between these two programs, see this visual comparison (pdf).
For more information on the RFSI program, please see the USDA RFSI program page.
Question: How is the RFBC Business Builder award program different than other AMS grants like the Farmers Market Promotion Program (FMPP), Local Food Promotion Program (LFPP), or the Regional Food Systems Partnership Program (RFSP)?
Answer: The Local Agriculture Market Program (LAMP), which includes the AMS programs FMPP, LFPP, and RFSP, is administered by USDA AMS. LAMP supports the development, coordination, and expansion of direct producer-to-consumer marketing; local and regional food markets and enterprises; and value-added agricultural products. The primary goals of LAMP are to:
- Connect and cultivate regional food economies through public-private partnerships.
- Support the development of business plans, feasibility studies, and strategies for value-added agricultural production and local and regional food system infrastructure.
- Strengthen capacity and regional food system development through community collaboration and expansion of mid-tier value chains.
- Improve income and economic opportunities for producers and food businesses through job creation; and
- Simplify the application processes and the reporting processes for the Program.
LAMP focuses on building and expanding direct-to-consumer markets and wholesale value chains through larger, multi-year projects with existing community support or partnerships that are required to benefit more than one farm or food business. AMS LAMP grants are administered directly by the USDA and generally do not cover capital investments or equipment.
Business Builder awards are direct investments in individual farm and food businesses to support their market goals and maximize their participation in the regional food system. Business Builder awards are administered by Regional Food Business Centers, not directly by USDA. In contrast to LAMP, Business Builder awards are designed to have a more streamlined application process, as well as no cost share or match requirement. Additionally, special purpose equipment, as well as minor improvements or alterations to an existing building to accommodate this equipment are allowable uses for the funds. These are not allowable costs for LAMP grants.
Question: How do Regional Food Business Center prioritize underserved businesses and communities?
Answer: Centers may not give special preference to or prioritize the selection of Business Builder subawards based on the race, ethnicity, gender, or other demographic characteristics of the applicant.
The Centers are geographically based, and all centers were required to define both their geographic region and high need areas within that region at the time of application. Per section 1.4 of the RFA:
Priority Areas: Applicants must define priority areas that they will serve within their proposed region that would classify as high need, underserved communities that were particularly affected by the pandemic. Project narratives should include specific data showing why the region and priority areas were chosen. Applications should describe the degree of historic economic distress experienced in the project region, including the economic impact of the coronavirus pandemic.
Centers are also directed to prioritize Center services to underserved communities and businesses. Per Section 1.3.1 the RFA:
The Regional Food Centers will target investment in underserved and tribal communities. This includes, but is not limited to: consulting with members of communities and organizations led by and serving communities that have been historically underrepresented and underserved by, or subject to discrimination in, Federal policies and programs; gathering data and conducting analyses that helps measure and advance equity; addressing barriers to full participation in programming for historically underserved communities; and, conducting equitable hiring practices in accordance with the law. Applicants are encouraged to include specific elements for how they will advance these efforts.
The above activities (e.g. consultation, data collection and analysis, addressing barrier to full participation in the program, equitable hiring) and geographic prioritization are allowable.
All Centers include considerations of equity in outreach, engagement, and program design, including consideration of how to address the specific needs and opportunities of underserved food and farm businesses.