NLPA Sheep and Goat Fund
Quick Facts About the
NLPA Sheep & Goat Fund
Some Frequently Asked Questions about the NLPA Sheep & Goat Fund:
Is the NLPA Sheep & Goat Fund part of the 201 Lamb Industry Recovery Plan?
The NLPA Sheep & Goat Fund is not a part of the 201 Lamb Industry Recovery Plan even though it shares many of the same goals.
What are the goals of the NLPA Sheep and Goat Fund?
It is the mission of the NLPA Sheep & Goat Fund to encourage innovation and efficiency in the sheep and goat industries by providing credit to eligible and qualified entities. NLPA has established the following goals with NSIIC for the Sheep & Goat Fund:
- Make capital available for enhancing production methods and services.
- Improve marketing efficiency, product quality, and industry infrastructure.
- Create opportunities for adding value to sheep and goat products.
Who is an eligible borrower?
An individual (sole proprietor) is not considered an eligible entity. This restriction was written into the legislation that set up and funded the Sheep Center. However, applicants may be a public, private, or cooperative organization; an association; corporation; nonprofit organization; a partnership; a limited liability company; a federally recognized Indian Tribe; a public or quasipublic agency; or any other recognized business organization.
Basic facts about the Fund
- The Fund is delivered through either direct loans or loan guarantees – grants are not available
- The Fund is revolving, therefore a loan repayment plan is required from applicants.
- Applications are reviewed by the Sheep & Goat Fund Committee.
- Loans are available in any amount up to $1.5 million per applicant.
- Interest rates and terms are determined during the approval process.
- In most cases, matching funds are not required. However, if matching funds are available, that information should be provided. It will help demonstrate that there is a financial commitment by those advocating the project and others who have an intrest in seeing the project succeed. Loans from other sources should be included in the matching fund information.
- The maximum term of the loan will be determined by the individual needs of the proposed project. The Sheep & Goat Fund Committee has the flexibility to tailor a repayment plan in accordance with the needs of each individual project.
What ways can the funds be used?
The Sheep and Goat Fund is administered by the Sheep and Goat Fund Committee. Members of the Committee have experience in either the sheep or goat industry or in agribusiness financing. The Committee has flexibility, within the guidelines of the agreement with NSIIC, to use the funds for the benefit of the sheep and goat industries. Following are some examples of areas where the NLPA Sheep and Goat Fund may be used:
- Investment in the development, processing and commercialization of new sheep or goat products.
- Improve marketing efficiency and product quality.
- Purchase of equipment, leasehold improvements, machinery, or inventory for sheep or goat processing.
- Business conversion, construction, enlargement, repair, modernization or development in processing facilities for sheep, goats or their products.
- Investment in development and use of new equipment and methods to process sheep or goat products.
- Facilitate infrastructure and business development in the sheep and goat industries.
- Purchase and development of land, easements, rights-of-way, buildings, or facilities for the purpose of sheep or goat processing.
- Investment in efforts to manufacture and market new products for sheep or goat disease prevention and control; predator control; genetic and reproductive performance.
- Commercialization of sheep or goat products that have been developed by public or private institutions.
As of June 2013, the fund has had the ability to make term loans to sheep or goat producers for the purpose of flock expansion. Up to $2 million of the Sheep and Goat Fund has been identified for qualified applicants to be used specifically for the purchase of breeding animals. This new loan program is the result of a joint effort between NLPA and the American Sheep Industry Association (ASI) in the spirit of ASI’s Let’s Grow initiative.
A few of the conditions of the lending program include:
- a minimum loan amount of $50,000 with the maximum loan amount based on credit worthiness of the borrower;
- a five-year maturity date;
- proceeds may only be used for the purchase of breeding animals and may not be used for other operating expenses; and prospective borrowers must demonstrate their ability to successfully produce sheep or goat in a production setting which may include the establishment of a mentor relationship, participation in educational programming for sheep/goat and financial management and the development of a marketing plan for the enterprise.