FAQS
Q. Why is an individual not qualified for this loan program?A. The applicant eligibility restriction excluding individuals for this funding was written into the legislation that set up and funded the Sheep Center. However, the funding that is provided by the Sheep Center through our agreement with the National Livestock Producers Association is available to all other legal entities such as partnerships, cooperatives, corporations, and Limited Liability Companies. One of the reasons for excluding individuals was the thought that other programs within USDA are specifically designed for individual and operating loans.
Q. Since
individuals are not qualified, what do I need to do to become
qualified? A. There are any number of business
structures that are considered eligible entities including, but not
limited to, partnerships, cooperatives, limited liability companies and
corporations. To be specific,
the legislation reads: “(3) ELIGIBLE ENTITY.—The term ‘eligible entity’
means an entity that promotes the betterment of the United States sheep or
goat industries and that is—(A) a public, private, or cooperative
organization; (B) an
association, including a corporation not operated for profit; (C) a federally recognized Indian
Tribe; or (D) a public or quasi-public agency.” Only eligible entities may obtain
funding through this program.
Q.
Is there a limit on how small a proposed project can be to be
considered? A.
There is no limitation on how small a proposed sheep or goat
project can be to be considered.
Q. Is there a minimum
or maximum amount of money that will be considered for each loan? A.
There
is no minimum amount for application for the Sheep and Goat Fund. There is however a maximum of $1million for any one applicant.
Providing funds to as many projects and geographic regions to aid
the entire industry is a principle goal.
Q.
Is there a requirement that there be matching funds to be eligible
for this funding? A.
In most cases matching funds are not required to be
considered. 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
that have an interest in seeing the project succeed. Loans from other sources
should be included in the matching fund information.
Q.
What is the Interest rate going to be? A.
The interest rate will be negotiated for each project on a case by
case basis depending on the needs of the proposed project and the risk
involved. In most cases
the rate should be below the available market rate. To maintain the revolving nature
of the fund a repayment plan of loan principal plus interest must be
established. In all cases the
specific needs of each project will be carefully considered and a
repayment plan arrived at that will assist the industry
Q. Need I be in attendance at the Committee Meeting to present my case. A.
Attendance is not necessary .
All information about the case should be in the application. The
Committee will follow up on particular requests for other information or
for further explanation, etc.
Q.
How quickly will I be able to obtain funds if I am approved? A. The
complexity of the proposed project is a major factor on how quickly
funding will be available.
The first step in the process is to make sure that the application
is complete (the applicant can help in this process by carefully answering
each question). The Sheep and
Goat Fund Committee will then review the project proposal. They meet following the end of
each calendar quarter. If the
Committee selects your project for further consideration there will be a
period of due diligence (fact finding and verification) that takes place
to insure that all of the information and documents are in order. Most proposed projects that are
selected for further consideration by the committee should expect to be
funded within sixty to ninety days after the Committee makes its
selection.
Q. Is
the committee looking for a particular type of project and are they
targeting certain areas of the country? A. Any type of project that will assist the Sheep and Goat Industry will be considered. The Committee will be considering all geographic areas of the country in prioritizing projects. An applicant should however keep in mind that there is a need to demonstrate how the proposed project will effect the local, regional, national or international market as they develop their proposal.
Q. How
long will I be able to use the money? When do I have to pay it
back? A.
The maximum term of the loan will be determined by the individual needs of
the proposed project, provided that no loan may exceed 40 years or the
useful life of the activity financed, whichever is less. The Sheep and Goat Fund committee
has the flexibility to tailor a repayment plan in accordance with the
needs of each individual project
Q.
Is this fund part of the 201
Funding? A. The Sheep and Goat Fund is not a part of the 201 Lamb Industry Recovery Plan even though it shares many of the same goals. It is a fund that has been made available to the National Livestock Producers Association through an agreement with the National Sheep Industry Improvement Center.
Q.
Why did the Sheep Center pick
The National Livestock Producers
Association for this
program? A.
NLPA was selected for their ability to provide:
Q.
Are grants available? A. There are no grants available through the agreement between the National Livestock Producers Association and the National Sheep Industry Improvement Center. For information on Grants, see the grant section.
Q. In the history section it talks about the arms length relationship between NSIIC and NLPA. What oversight and assurances does the NSIIC Board have? A. The agreement between NSIIC and NLPA reserves for the NSIIC Board three oversight responsibilities. 1. Nominations - NSIIC approves the members that serve on the NLPA Sheep and Goat Fund Committee. The NLPA Sheep and goat Fund Committee members terms of office are staggered and the NSIIC Board approves all 7 committee member appointments. NLPA submits nominatinons to the NSIIC Board of Directors when a term of office is about to expire or there is a resignation. NSIIC can accept or reject the nominee. The agreement also has as part of the arms length relationship a provision that no more than one current NSIIC Board Member may serve on the NLPA Sheep and Goat Fund Committee. 2. Administrative Budget - NSIIC must approve the NLPA Sheep & Goat Fund Administrative Budget. 3. Legal - NLPA is bound by the Legislation, NSIIC Strategic Plan, Grant Agreement and all other applicable laws and regulations. NSIIC’s oversight includes making sure that the Committee does not act outside the legal or regulatory boundaries.Q. What does the NLPA Sheep and Goat Fund Committee look for?
Does it benefit the US Sheep or Goat industry? Is it financially feasible? Is it an innovative new approach? Does it have a regional or national impact? Does it help save existing infrastructure?
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