N.C. Value-Added Cost Share
Value-Added Producer Grant – Frequently Asked Questions
Application Process
Q. Can I submit my application electronically?
A. Yes. You must follow the instructions at http://www.grants.gov.
Q. What if I forgot to send in part of my application?
A. If you realize that you forgot to send in part of your application before the application deadline, you should mail the missing part(s) by the deadline. Include a note explaining that your application has already been submitted and the enclosed or attached documents are in addition your first submission.
Do not resubmit the entire application. Your additional submission will be accepted at the discretion of the Agency. If you realize you forgot to send in part of your application after the application deadline, no additional materials will be accepted.
Matching Funds
Q. Can a line of credit from a lender be used as matching funds?
A. Yes, a line of credit from a bank can be used as matching funds. The line of credit must be verified by a signed letter from the lender indicating the amount of credit available, the time period during which the funds will be available, and the purpose for which the funds may be used.
Q. Can expected income (e.g. revenue from selling the value-added product) during the time of the grant be used as matching funds?
A. Expected income (also called program income) cannot be used as matching funds at the time of application. The applicant must demonstrate that matching funds are available at the time of application. However, if the grant is awarded, the recipient may substitute program income for other sources of matching funds with the approval of the Agency.
Product Eligibility
Q. Is milk an eligible value-added product?
A. In order to be considered an eligible value-added product, milk must be processed into a new form (e.g. cheese), or produced or marketed in a differentiated way (e.g. organic, identity-preserved). Simply bottling the milk is not sufficient.
Activity Eligibility
Q. Can I apply for a working capital grant even though my facility hasn’t been built yet?
A. You must be in an operation by the proposed start date of your project and be able to demonstrate to the Agency that you will be able to complete your project within the timeframes established by the annual Notice of Solicitation of Applications.
Q. What if I am running behind schedule and can’t begin my project by the date I originally proposed in my application? Will I lose my grant?
A. If an applicant is selected for funding, but is not ready to begin work on the grant by the project start date, the Agency may withdraw the grant offer, depending on the reason why the applicant is not ready. The Agency will evaluate the reason and make a decision on a case by case basis.
Q. Can I use VAPG funds to buy equipment, construct a facility or make improvements to my value-added operation?
A. No. VAPG funds may not be used to plan, repair, rehabilitate, acquire, or construct a building or facility; purchase, rent, or install fixed equipment; purchase vehicles; pay for the preparation of the VAPG application; pay any expenses not directly related to the funded value-added venture; fund architectural or engineering design work for a specific physical facility; fund any expenses related to the production of any commodity or product to which value will be added; and more. See full VAPG NOFA for more details (http://www.rurdev.usda.gov/rbs/coops/vadg.htm).
Other
Q. Does my project have to occur in a rural area in order to be eligible?
A. No. The authorizing legislation for the VAPG Program does not require projects to take place in rural areas in order to be eligible. Projects must be agricultural in nature, however.
Q. Who do I contact if I have questions about whether or not I am eligible for a VAPG?
A. In North Carolina, contact Neal Sherrod at either (919) 873-2043 or neal.sherrod@nc.usda.gov
