Frequently Asked Questions

What counties does the Business Builder Farm and Food Grants program serve?

• Applications are open to small and mid-sized farm and food businesses across Texas and New Mexico, with the exception of 53 counties in East Texas, which are being served by the Delta Regional Food Business Center through separate funding.

How much funding is available per round of the grant cycle?

• $6.7 million is available per round, with a total of $3.7 million to be awarded under the Frontera Farm and Food Grants and $3 million to be awarded under the Business Builder Farm and Food Grants in the first round.

What is the maximum award amount per business?

• For the BBFFG, the maximum award is $100,000 per business. For the FFFG, the maximum award is $50,000 per business. A business can get up to $100,000 in total over all the cycles of the subawards from all Regional Food Business Centers.

What does it mean that this is a reimbursable grant?

• The Farm and Food grant is reimbursable, meaning you will need to spend the money before receiving any funds. Subaward recipients will be able to submit for reimbursement xxxxxx, with an anticipated processing time for each xxxxxx request being 60 to 90 days.

Do you need to close out a Farm and Food subaward before applying for another one?

• No, you do not. While all subawards have a maximum time frame of two years or xx xx, 2027, whichever comes first, each award will have its own time frame for processing and close-out reporting. It is important to note that while you can apply for more than one round of funding, that maximum amount in total that can be awarded is $100,000 dollars.

What is a Colonia community?

• Colonias are neighborhoods or communities within 150 miles of the U.S./Mexico border that are economically distressed. For many the basic infrastructure that most Americans take for granted is non-existent.

What are the counties not served by the Business Builder Farm and Food Grant program?

• Anderson, Angelina, Austin, Brazoria, Brazos, Burleson, Caldwell, Chambers, Cherokee, Colorado, Falls, Fayette, Fort Bend, Freestone, Galveston, Gonzales, Grimes, Hardin, Harris, Hill, Houston, Jasper, Jefferson, Lavaca, Lee, Leon, Liberty, Limestone, Madison, Matagorda, McLennan, Milam, Montgomery, Nacogdoches, Navarro, Newton, Orange, Polk, Robertson, Sabine, San Augustine, San Jacinto, Shelby, Travis, Trinity, Tyler, Walker, Waller, Washington, Wharton, Williamson

When does the next cycle open and close?

• Though subject to adjustments, the current timing for each cycle of the grant program can be found on the center’s website.

What’s the allowable timeline for completion of a project funded?

• Each subaward needs to be completed within 2 years or by xx/xx/2027. When applying, please ensure that your budget timeline is equal to or less than a 2-year timeframe.

What does it mean that this is also an Advance Payment grant?

• The Farm and Food grant will also allow Advance Payment requests specifically for “actual, immediate” expenses, such as working capital for payroll expenditures, advances will only be made for up to 90 days of expenditures at a time. Requests for Advance Payment for Special Equipment or Inventory will be completed through a direct payment to the vendor, using the documentation in the form of quotes on letterhead provided. Any balance of unobligated or unspent funds advanced must be immediately refunded to the Awarding Agency (the Center), at the end of the agreement. 

What is FFATA Reporting?

• The Federal Funding Accountability and Transparency Subaward Reporting System (FFATA) is a reporting system that provides publicly searchable information about government funding recipients. If you receive BBS funding of 30K and above, you will be required to report your information to this system. For more information, vist https://www.fsrs.gov/faqs#

What are examples of eligible food businesses for the RGC-RFBC farm and food grants?

• Non-Profit/Community-based Organizations 
• For-Profit Businesses 
• Value Added Producers 
• Fleet/Food Distribution Businesses 
• Food Hubs 
• Commercial/Shared Kitchen and food manufacturing sites 
• Co-Packing facilities 
• Food Storage Facilities (Cold and Grain) 

What is a Unique Entity Identifier (UEI)?

• A Unique Entity Identifier (UEI) is a 12-character alphanumeric code that is used to identify entities that do business with the U.S. government. The federal government uses UEIs to track the distribution of grant funds. Find out more about the UEI here. UEI: Everyone that receives funding from a Business Builder Subaward is required to have a Unique Entity ID (UEI)  through SAM.gov. Prepare by securing your Unique Entity ID now (or renewing your UEI if necessary!). A quick start guide can be downloaded here and a video outlining the process can be found here.

What is product development and food safety?

• Value added production is a major revenue driver for food related businesses and a key feature of the overall food supply chain.  Funding can be applied towards product testing, permitting and licensing costs, as well as workforce development and training, marketing and branding. 

What are examples of allowable costs or activities generally funded by the Rio Grande Colonias USDA Regional Food Business Center?

• Working capital for post-harvest activities
• Staff time/labor costs

This should be reflective of post-production or business retention and expansion-related activities, such as value-added product development and distribution, program implementation, marketing/branding, and business development 

• Software implementation 
• Marketing 
• Trainings 
• Purchase of special purpose equipment (Refer to Equipment Policy)
  • This must be related to post harvest activities, such as food safety, processing, and/or packaging equipment. E.g. Walk in coolers and freezer, Commercial kitchen and Packaging and labeling equipment.
• Value chain, supply chain coordination and innovation 
• Business planning 
• Product development 
• Business expansion 
• Maintenance 

Is general purpose equipment allowable?

• No. The acquisition cost of general-purpose equipment or lease agreements to own (i.e., lease-to-own or rent-to-own) is unallowable.

What is General-Purpose Equipment?

• This equipment is not limited to technical activities. Examples include office equipment and furnishings, modular offices, telephone networks, information technology equipment and systems, air conditioning equipment, reproduction and printing equipment, and motor vehicles. The acquisition cost of general-purpose equipment or lease agreements to own (i.e., lease-to-own or rent-to-own) is unallowable.

Is information technology systems equipment cost allowable?

• Any IT system equipment having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established in accordance with GAAP by the recipient for financial statement purposes or $5,000.

What are postproduction or post-harvest activities?

• The post-harvest period runs from exit from the field to the time of culinary preparation. These activities encompass the delivery of a crop from the time and place of harvest to the time and place of consumption, with minimum loss, maximum efficiency and maximum return for all involved.

What is NAICS?

• The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. Find out more about the NAICS here.

What is Infrastructure Modernization?

• This is a production project proposing an upgrade(s) to sanitizing or manufacturing equipment for the purpose of expanding their operation and capacity.  Other examples of equipment may include cold or dry storage and any associated installation costs, (but NO new construction). This also applies to training or workforce development for staff to safely use upgraded equipment and commercial facilities.  Associated permitting/licensing costs related to the business expansion may also be included.  Technical assistance and coordination with regards to transportation and logistics for the movement of food throughout the region may also be administered as needed.

What is Land Stewardship

• In its broadest sense, Land Stewardship refers to a shared responsibility to retain the quality and abundance of our land, air, water, and biodiversity and to manage this natural capital in a way that conserves all its values. Find out more about land stewardship here.

What are examples of unallowable costs or activities generally not funded by the Rio Grande Colonias USDA Regional Food Business Center?

• Farm, gardening, and production activities and supplies; including, but not limited to soil, seeds, shovels, gardening tools, greenhouses, and hoop houses.
• Construction
• Non-specialized equipment such as tractors, trucks, or trailers.
• Land or property acquisition
• Pay off existing debt
• Fines, penalties, damages, and other settlements
• Goods or services for personal use
• Lobbying or any political activity
• Alcoholic beverages
• Contributions or donations
• Fundraising and investment management costs
• Electronic Benefit Transfer (EBT) Machines

What is equipment?

• Equipment is defined as tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost that equals or less than $5,000. Equipment is subject to the full range of acquisition, use, management, and disposition requirements under 2 CFR § 200.313 as applicable.

What is special purpose equipment?

• This is an equipment used only for research, scientific, or technical activities. A special purpose equipment is allowable when provided in the approved budget or with prior written approval for acquisition costs and rental costs of provided the following criteria are met:
  • Necessary for the research, scientific, or other technical activities of the grant agreement;
  • Not otherwise reasonably available and accessible;
  • The type of equipment is normally charged as a direct cost by the organization;
  • Acquired in accordance with organizational practices;
  • Must be used solely to meet the legislative purpose of the grant program and objectives of the grant agreement;
  • More than one single commercial organization, commercial product, or individual must benefit from the use of the equipment;
  • Must not use special purpose equipment acquired with grant funds to provide services for a fee to compete unfairly with private companies that provide equivalent services; and is subject to the full range of acquisition, use, management, and disposition requirements under 2 CFR § 200.313 as applicable.