USDA Regional Food Business Centers Frequently Asked Questions

Question 1.1: What is the Regional Food Business Center program? 

Answer 1.1: The USDA Regional Food Business Centers support farms and food businesses to create new market opportunities, enhance competitiveness, and strengthening their regional supply chains. In partnership with USDA’ Agricultural Marketing Service, Regional Food Business Centers are operated by lead organizations and partner networks embedded across each region. They offer technical assistance, capacity building awards, and coordinate services to catalyze the growth of regional food economies.  

Question 1.2: What is the purpose of the Regional Food Business Centers? 
Answer 1.2:  Regional Food Business Centers increase the economic viability of family farms and food businesses by enhancing competitiveness, creating new market opportunities, and strengthening regional supply chains.

Question 1.3: What are the desired outcomes/goals of the Regional Food Business Centers?

Answer 1.3: Overarching goals for the Regional Food Business Center program include:

• Supply Chain Resilience: Expanding and strengthening regional supply chains in response to hardships and vulnerabilities exposed by recent national emergencies, particularly the Covid-19 pandemic.
• Business Growth: Ensuring economic opportunity for small and mid-size producers and processors seeking to scale their sales to distributors, retail outlets, institutions, and other regional market outlets.
• Enhanced Competitiveness: Increasing food and farm business and financial acumen, increasing the number of new food and farm businesses, and improving viability of existing businesses.

Question 1.4: How many Food Business Centers are there?

Answer 1.4: There are 11 Regional Food Business Centers and 1 National Intertribal Food Business Center which provide full geographic coverage of the United States, islands, territories, and tribal nations.     
 

Question 1.5: Who administers the Regional Food Business Center program?

Answer 1.5: The USDA Regional Food Business Center program is administered by the USDA Agricultural Marketing Service (AMS). AMS administers programs that create domestic and international marketing opportunities for U.S. producers of food, fiber, and specialty crops. The Agency also provides the agriculture industry with valuable services to ensure the quality and availability of wholesome food for consumers across the country and around the world.

Question 1.6: How does the Regional Food Business Center program connect and coordinate with other USDA agencies?

Answer 1.6: Connecting and coordinating the Regional Food Business Center program with other USDA programs and services is a responsibility that is jointly held by USDA AMS and the Centers. For USDA AMS, this includes strengthening communication and connectivity through regular program briefings with other USDA agencies to identify opportunities for collaboration with a particular focus on direct service and technical assistance. With support from USDA AMS and the Regional Coordinators, each of the Centers will provide technical assistance to small and mid-sized farm and food businesses to help them access and navigate USDA programs, services, and resources.

Question 1.7: What is a cooperative agreement and how is it different from a grant?

Answer 1.7: A cooperative agreement is a financial assistance instrument between a federal agency and a non-federal entity that is used when the government’s purpose is to assist the intermediary in providing services to recipients. Cooperative agreements differ from grant agreements in that they provide for substantial involvement between the Federal awarding agency and the non-Federal entity in carrying out award activities.   
The Regional Food Business Centers are cooperative agreements between USDA and the lead organization of each Center. USDA AMS plays an ongoing role to ensure maximum access to complementary USDA Programs, resources, and technical assistance. Cooperative agreements allow for flexibility to respond to changing needs and opportunities over the course of the program. USDA AMS’ continued involvement offers consistent approaches and learning opportunities across the Centers.

Question 1.8: Why are Food Business Centers at different stages of launching or implementing programming?

Answer 1.8: Centers have the flexibility to establish timelines that enable them to respond to changing needs and opportunities specific to their region over the course of the program.

Question 2.1: How do Regional Food Business Centers strengthen local and regional food supply chains?
 
Answer 2.1: The Centers strengthen local and regional food supply chains through: 

• Coordination: The Centers are regional hubs that coordinate across geographic areas, with USDA, other federal, state, and tribal governments. Centers work with local partners to develop and implement public-private partnerships, including technical assistance and funding plans, to serve the specific needs of their region.
   
• Technical Assistance: The Centers provide technical assistance to small- and mid-sized food and farm businesses (producers, processors, distributors, and other businesses within the food supply chain). Centers also support market development through supply chain coordination. Technical assistance includes guidance, support, assessment, and/or customized training aimed at building capacity to access new markets, increasing viability, or increasing business acumen. Technical assistance may come in the forms of training (group or individual), coaching (1:1), peer-to-peer mentoring, or other direct support.
   
• Capacity Building: The Centers invest in business development with Business Builder awards of up to $100,000. These grants support farm and food businesses seeking to increase profitability through market variation or expansion. These awards may support staff time, business planning activities, software implementation, the purchase includes food safety, processing and packaging equipment, supply chain coordination and innovation, product development, or marketing expenses.

Question 2.2: What are the region-specific priorities of the Centers?

Answer 2.2: Each Center identifies and supports region-specific priorities that address unique needs and opportunities of the regional markets they support. For additional information, including how each Center is working towards their unique priorities, visit the Center's website listed on the RFBC Awarded Center page.

Question 2.3: How does the Regional Food Business Center program connect with food access and nutrition security initiatives?

Answer 2.3: The RFBC program is specifically dedicated to strengthening the financial viability and business capacities of small and mid-sized farms and food business. The Centers’ technical assistance and capacity building investments prioritize expanding the ability of those farms and food businesses to access more and better markets. There are other programs across USDA that provide specific support to nutrition security initiatives. The RFBC program will coordinate and partner with them in their efforts across the regions.
 

Question 3.1: How do I get in touch with USDA staff that work with the Regional Food Business Centers?
 
Answer 3.1: To contact USDA staff that work with the Centers, email RegionalFoodCenters@usda.gov. 

Question 3.2: How do I connect with the Center(s) that serve my community? 

Answer 3.2: Websites and contact emails for each of the Centers can be found on the RFBC Awarded Center page of the RFBC website. If you live or work in multiple regions, contact the Centers supporting your areas for available resources and opportunities.

Question 4.1: Can USDA Regional Food Business Center funds be used to purchase land or buildings?

Answer 4.1: No, program funds cannot be used for the acquisition of buildings, facilities, or land, or any type of renovations or alterations to an existing building or facility (including site grading and improvement, and architecture fees). Funds may be used to rent a building or facility for project-specific purposes, during the project’s period of performance. 

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

Question 4.2: Can architectural design services be paid for by Regional Food Business Center funds? 

Answer 4.2: No, architectural design services cannot be paid for by Regional Food Business Center program funding. However, USDA AMS offers architectural design technical assistance at no cost. For more information, visit our facility design webpage.

Question 4.3: Can Regional Food Business Center program funds be used for construction?

Answer 4.3: No, according to the uniform guidance on federal financial assistance, 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. 

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.

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

Question 4.4: What qualifies as “special purpose equipment”? 

Answer 4.4: Special purpose equipment is equipment used only for research or technical activities conducted by the Center and its subaward recipients. Business Builder subrecipients may purchase special purpose equipment if they serve a technical purpose that supports program goals.

The RFBC Program generally allows special purpose equipment purchases that support producer access to new markets and those that benefit local and regional supply chains. Special purpose equipment purchases may support:

1. Transportation (purchase, rental, or lease of a vehicle), processing, aggregation, or storage investments;
2. Supply chain innovation or upgrades, including equipment or technology upgrades or investments to support process adaptations; and
3. Product development, packaging, and marketing of agricultural products.

See Program Specific Terms and Conditions (pdf) for more information on equipment.

Question 4.5: How will purchased equipment be monitored?

Answer 4.5: Purchased equipment will be monitored by USDA AMS (as required by 2 CFR § 200.313). For equipment acquired by an RFBC subrecipient (e.g., Business Builder awardee), the subrecipients will defer to the awarding Center’s policies and procedures.
 
Question 4.6: Can operational and financial support staff be written into the budget as direct costs?

Answer 4.6: Yes, under specific conditions. Administrative and clerical staff are normally treated as indirect costs. However, in some cases, they may be considered direct costs if the following conditions (as outlined in 2 CFR 200.413(c)) are met:

1. Administrative or clerical services are integral to a project or activity;
2. Individuals involved can be specifically identified with the project or activity;
3. Such costs are explicitly included in the budget or have the prior written approval of the Federal awarding agency; and
4. The costs are not also recovered as indirect costs.
    

Question 5.2: What types of farms and food businesses are eligible for Business Builder awards?

Answer 5.2: All Centers administer a Business Builder award program as part of their Capacity Building goals. Business Builder awards provide direct financial assistance of up to $100,000 to eligible small and mid-sized farms and food businesses. Awards are made for business, market, and supply chain development projects aimed at increasing business viability, developing regional market opportunities, and expanding supply chain capacity.
The Business Builder award program is intended for small and mid-sized food and farm businesses including producers, processors, aggregators, distributors, and other businesses within the food supply chain. The awards may fund staff time; business planning activities; software implementation; the purchase of specialized equipment. They may also fund value chain and supply chain coordination and innovation; product development; and marketing efforts. To learn more about each Center’s Business Builder award program, visit the Business Builder Grant Status page on the RFBC website.

Question 5.2: What types of farms and food businesses are eligible for Business Builder awards?
Answer 5.2: 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. Each Center provides their specific definition of small and mid-sized food and farm businesses and may identify additional priorities that align unique market-based opportunities within their region.
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. 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 5.3: What types of food or agricultural products can be supported with Business Builder awards?
Answer 5.3: The Regional Food Business Center program can fund all types of products produced locally or regionally. That includes fruits, vegetables, meat, poultry, fish, grains, and dairy, as well as related co-products and byproducts that support regional food supply chains and markets and are aligned with the program’s goals. Centers may also develop region-specific priorities to support the programmatic goals within their region.
All USDA AMS awards are subject to the terms and conditions, cost principles, and other considerations described in the Program Specific Terms and Conditions (pdf) and AMS General Terms and Conditions (pdf).

Question 5.4: What types of business expenses or activities are allowable through the Business Builder award program?

Answer 5.4:  The allowable costs of the RFBC program are fully detailed within the AMS General Terms and Conditions (pdf) 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: 

1.    Increase food and farm business revenue, financial acumen, and overall viability;
2.    Create more, new, and better markets and increase market awareness and access; 
3.    Increase the number of local producers that distributors, retailers and foodservice buyers source from, either directly or through intermediaries; and
4.    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 5.5: What types of business expenses or activities are not allowable through the Business Builder award program?
Answer 5.5: Within AMS General Terms and Conditions (pdf) and Program Specific Terms and Conditions (pdf), there are activities and costs identified as explicitly unallowable. These include but are not limited to:

1.    Farm, gardening, and production activities and supplies (including salaries, equipment or supplies associated with production activities); 
2.    Acquisition of buildings or land; 
3.    Construction; 
4.    General-purpose equipment; 
5.    Capital for revolving loan funds or seed equity or for fundraising or investment costs; 
6.    Purchase of food or services to donate to other entities and/ or individuals.

See below for additional information about allowable costs and activities.

Question 5.6: How can I learn more about the Regional Food Business Center Business Builder awards available in my region?

Answer 5.6: 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. 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 5.7: Do I need a Unique Entity Identifier (UEI) number to receive a Business Builder award?

Answer 5.7: Yes, a UEI is required to receive a Business Builder award. 

Question 5.8: What is a Unique Entity Identifier (UEI) number?

Answer 5.8: 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.

Question 5.9: Why is a Unique Entity Identifier (UEI) required to receive a Business Builder award?

Answer 5.9: 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.

Question 5.10: How does a farm, food business, or organization obtain a UEI?

Answer 5.10: 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 account creation. 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, this FAQ or these Quick Start Links.

Question 5.11: How long does it typically take to receive a UEI once requested?

Answer 5.11: 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 account creation, though it can take up to 10 days.
  
Question 5.12: Are there any costs or fees associated with obtaining a Unique Entity Identifier (UEI)? 

Answer 5.12: 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 your concerns to the Government Accountability Office and their fraud prevention and reporting system.

Question 5.13: Do Business Builder award recipients need a SAM.Gov registration?

Answer 5.13: 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 https://sam.gov/content/duns-uei.

Question 5.14: 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 5.14: 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 Program, or from other funded initiatives.

Question 5.15: How are Business Builder award funds issued to recipients? Are advance payments allowable?

Answer 5.15: 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 AMS General Terms and Conditions (pdf) on a case-by-case basis. The decision to issue advance payments is at the discretion of each Center.

Question 5.16: 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 5.16: 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 5.17: How is the Regional Food Business Center program ensuring streamlined access to business development support through Business Builder awards?

Answer 5.17: Characteristics of the Business Builder award program make it more streamlined for applicants 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 direct awards to entities that receive pre-approved technical assistance from that Center. 

Question 5.18: Can participants from other USDA technical assistance programs also pursue Business Builder Awards?

Answer 5.18: 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.

Question 5.19: 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 Partnerships Program (RFSP)?

Answer 5.19: The Local Agriculture Market Program (LAMP), which includes the AMS programs Farmers Market Promotion Program (FMPP), Local Food Promotion Program (LFPP), and Regional Food System Partnerships (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

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 regional supply chains. 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 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. 

Question 5.20: Do Regional Food Business Center business builder awards prioritize underserved businesses?

Answer 5.20: Centers may not give special preference to or prioritize the selection of Business Builder awards based on the race, ethnicity, gender, or other protected characteristics of the applicant. All aspects of the program must comply with the USDA’s non-discrimination policy.

Question 6.1: What kinds of technical assistance are the Regional Food Business Centers providing? 

Answer 6.1: The Centers provide direct technical assistance (TA) and supply chain coordination with a focus on market development, business development, and managing financial resources. Each Center has identified priority areas for technical assistance (e.g., aggregation/distribution, specialty crop processing for institutions) for the region they serve. Technical assistance includes guidance, support, advice, assessment, and/or customized training aimed at building capacity to access new markets, increase viability, or increase business acumen. Technical assistance may come in the forms of training (group or individual), coaching (1:1), peer-to-peer mentoring, or other forms of direct support.     

Question 6.2: Who is the intended audience for Regional Food Business Center technical assistance? 

Answer 6.2: Technical assistance beneficiaries include:

• Small and mid-size food aggregators, processors, distributors, and food hubs; 
• Small and mid-sized producers of all kinds selling into regional markets; 
• USDA grant and loan program applicants and recipients; 
• Institutional, retail and other food buyers across market sectors; and\

Other entities as determined by the Regional Food Business Center and USDA. 

Question 6.3: Can USDA Regional Food Business Centers provide technical assistance to apply for federal funding?

Answer 6.3: Yes, Regional Centers can provide technical assistance to help businesses learn about and successfully apply for federal grants and other programs.  Note: Using federal funds or time paid for with federal funds is not permitted as a cost share or match for federal grants.

Question 7.1: How will the USDA Regional Food Business Centers track outcomes and demonstrate impact over the five-year program period?

Answer 7.1: Throughout the program period, each Center will submit a Semi-Annual Performance Progress Report highlighting progress in key indicators associated with each outcome. Indicators include increasing food and farm business and finance acumen; creating more and better markets and increasing market awareness and access; ensuring small and mid-size producers can gain access to distributors, retail outlets, and institutions; increasing the number of new food and farm businesses and viability of existing businesses; and increasing the revenue of food and farm businesses served. Aggregated results of this reporting will be shared publicly to demonstrate overall program impact on the Regional Food Business Centers Impact Page. In addition, USDA will also work with Centers to elevate and share stories from food and farm businesses across the country that have been impacted by program activities.