You may obtain a loan for your project before applying for and receiving this grant. If you plan to use the loan to cover the matching part of your project, you might want to start working with a lender now, because all matching funds must be committed or secured at the time an applicant is recommended for an award.
Even if you obtain a loan now, we cannot reimburse any expenses that happen before the start of the grant contract agreement, nor can you use these expenses as part of your match contribution. Do not make any purchases or spend any funds you plan to include in your grant project or utilize as a matching contribution before all parties have signed your grant contract agreement.
For example, if you buy a piece of equipment with a loan before the start of the grant contract agreement, it’s not eligible to be reimbursed through the grant, nor can it be counted as part of your matching contribution.
Nonprofits and cooperatives will qualify for reduced match based on the composition of their board or governing body. To be eligible, the majority of the board’s members must be eligible for reduced match under one or more of the qualifying categories described on page 9 of the RFP. Eligibility for reduced match is not based on the population(s) the organization serves.
For example, a nonprofit may qualify for reduced match under the women-owned business category if 51% or more of their voting board members are women, or a cooperative may qualify for reduced match if its nine-member board is made up of four board members who are socially disadvantaged producers and two board members who are women (six out of nine members belong to a qualifying category).
If your cooperative business, like other types of businesses, can demonstrate that 51% or more of your cooperative is owned by members who are eligible for reduced match, that may also be used as the basis for the cooperative to qualify for reduced match.
Nonprofits and cooperatives will qualify for reduced match based on the composition of their board or governing body. To be eligible, the majority of the board’s members must be eligible for reduced match under one or more of the qualifying categories described on page 9 of the RFP. Eligibility for reduced match is not based on the population(s) the organization serves.
For example, a nonprofit may qualify for reduced match under the women-owned business category if 51% or more of their voting board members are women, or a cooperative may qualify for reduced match if its nine-member board is made up of four board members who are socially disadvantaged producers and two board members who are women (six out of nine members belong to a qualifying category).
If your cooperative business, like other types of businesses, can demonstrate that 51% or more of your cooperative is owned by members who are eligible for reduced match, that may also be used as the basis for the cooperative to qualify for reduced match.
RFSI is federally funded through a cooperative agreement with USDA-Agricultural Marketing Service. Unlike most grants administered by the MDA, you may use grant funds from another state grant as matching funds for this program. Funds from other state, local, or private grants may be used as matching funds, so long as those funds are not from another federal pass-through grant (such as a Specialty Crop Block Grant) and aren’t committed to another grant as matching funds. Federal grants or funds from any source cannot be used as match.
Note: If you plan to use funds from a state grant or loan to meet all or part of your project’s matching requirement — and if your project involves construction — the Minnesota Department of Labor and Industry will need to evaluate your project to determine if state prevailing wage requirements will apply.
RFSI is federally funded through a cooperative agreement with USDA-Agricultural Marketing Service. Unlike most grants administered by the MDA, you may use grant funds from another state grant as matching funds for this program. Funds from other state, local, or private grants may be used as matching funds, so long as those funds are not from another federal pass-through grant (such as a Specialty Crop Block Grant) and aren’t committed to another grant as matching funds. Federal grants or funds from any source cannot be used as match.
Note: If you plan to use funds from a state grant or loan to meet all or part of your project’s matching requirement — and if your project involves construction — the Minnesota Department of Labor and Industry will need to evaluate your project to determine if state prevailing wage requirements will apply.
No additional priority is given to applications that include more matching funds than the 50% match requirement or 25% reduced match requirement for qualifying applicants. Even if you plan to spend more than the required matching amount for your project (i.e., “overmatching”), we recommend you only include the required matching amount for the application budget. If you voluntarily provide a match above the program’s requirement in your application, the total becomes a binding requirement in your grant contract agreement.
No additional priority is given to applications that include more matching funds than the 50% match requirement or 25% reduced match requirement for qualifying applicants. Even if you plan to spend more than the required matching amount for your project (i.e., “overmatching”), we recommend you only include the required matching amount for the application budget. If you voluntarily provide a match above the program’s requirement in your application, the total becomes a binding requirement in your grant contract agreement.
All matching contributions must be an expense that is eligible under the grant. Purchasing land is not an eligible expense under the grant and therefore it also cannot be used as match.
All matching contributions must be an expense that is eligible under the grant. Purchasing land is not an eligible expense under the grant and therefore it also cannot be used as match.
When determining if a cost will be eligible as match, it must meet these three criteria:
- It is an eligible cost that could be paid for with grant funds.
- It will happen during the grant period.
- It will be paid for with non-federal funds.
To verify the match for your grant project, you must submit a match verification letter signed by each individual or organization providing in-kind or cash matching contributions for your project. We’ve provided the required template for these letters as a download on our RFSI web page. As part of the Project Readiness section of the application, you may also choose to include letters of support from business or financial contacts that can attest to your business and financial readiness and your organization’s capacity to provide the match you are committing.
Funds must be either committed or secured at the time an applicant is recommended for an award. You are not required to have the full match amount in-hand at that time. If you receive an RFSI grant, you will be required provide documentation when requesting reimbursement from the grant to verify both in-kind and cash match contributions have been provided according to the budget provided as part of your application.
You may obtain a loan for your project before applying for and receiving this grant. If you plan to use the loan to cover the matching part of your project, you might want to start working with a lender now, because all matching funds must be committed or secured at the time an applicant is recommended for an award.
Even if you obtain a loan now, we cannot reimburse any expenses that happen before the start of the grant contract agreement, nor can you use these expenses as part of your match contribution. Do not make any purchases or spend any funds you plan to include in your grant project or utilize as a matching contribution before all parties have signed your grant contract agreement.
For example, if you buy a piece of equipment with a loan before the start of the grant contract agreement, it’s not eligible to be reimbursed through the grant, nor can it be counted as part of your matching contribution.
According to the USDA AMS General Terms and Conditions (below), grantees cannot use federal funds to meet cost sharing or matching requirements. However, some loan programs that the federal government is involved in or guarantees provide loans originating from non-federal sources. If you are unsure if your loan is considered federal funds, it is your responsibility to speak to your lender to understand the categorization of the funds.
Please note that the grant-funded assets cannot be used as collateral for the matching funds loan.
If you, as the applicant, are providing the match to your own project, you only need to provide a match verification letter from yourself to verify that you have the match committed or secured. It is allowable for the letter to be both addressed to and signed by you. If any third parties that are not the applicant are contributing match to your project, they must also provide a match verification letter.
You do not need to provide match item-by-item. It is acceptable to provide match on some items but not for others, as long as for your overall project, you meet the match requirement of 50% or 25% if you qualify for the reduced match. For example, you could meet your match by providing an in-kind contribution in your personnel/fringe budget categories, but only request grant funds in your equipment budget category.
Note: For this reason, the budget worksheet will not automatically calculate your required match. Please double check that you are providing your required match of 25% or 50% of total project costs by using the totals in the first “Budget Summary” tab of the worksheet. You should also cross-reference these to the Grant Request section at the beginning of the application to ensure that the totals on your budget worksheet match the total project cost, grant request, and matching funds you have listed there.
For each line item in your budget, you must list how much money you are requesting from the grant for the item and how much of the line item’s cost you will be covering with your matching contribution. In the “Funds requested” column, list the amount of grant money you are requesting for the item. In the “Match value” column, list the amount of match you are providing for the item. The sum of your “Funds requested” column and the “Match value” column for each line item should equal the total cost of the item.
For example, if a piece of equipment costs $2,000 and you plan to cover 25% of the item’s cost with matching funds, you would list $1,500 in the “Funds requested” column and $500 in the “Match value” column.
No, to qualify for the reduced match, you only need to self-certify that you meet the definition of one of these types of businesses or organizations on the application:
- Beginning farmer or rancher
- Veteran farmer or rancher
- Limited resource farmer or rancher
- Socially disadvantaged farmer or rancher
- Small disadvantaged business
- Women-owned small business
- Veteran-owned small business
The definitions for beginning farmer or rancher, veteran farmer or rancher, limited resource farmer or rancher, and socially disadvantaged farmer or rancher can be found on the USDA’s Historically Underserved Farmers and Ranchers web page.
The definitions for small disadvantaged business, women-owned small business, and veteran-owned small business can be found on the Small Business Administration’s (SBA) Contracting Assistance Programs web page. Note that you don't need to be registered with these SBA contracting programs to qualify for the reduced match.
By selecting to self-certify for the reduced 25% match on the application, you are attesting to the truth and accuracy of your claim that your business or organization meets the definitions listed above and qualifies for reduced match.
Nonprofits and cooperatives will qualify for reduced match based on the composition of their board or governing body. To be eligible, the majority of the board’s members must be eligible for reduced match under one or more of the qualifying categories described on page 9 of the RFP. Eligibility for reduced match is not based on the population(s) the organization serves.
For example, a nonprofit may qualify for reduced match under the women-owned business category if 51% or more of their voting board members are women, or a cooperative may qualify for reduced match if its nine-member board is made up of four board members who are socially disadvantaged producers and two board members who are women (six out of nine members belong to a qualifying category).
If your cooperative business, like other types of businesses, can demonstrate that 51% or more of your cooperative is owned by members who are eligible for reduced match, that may also be used as the basis for the cooperative to qualify for reduced match.
There is no specific set aside or portion of RFSI funds dedicated specifically to tribal/Native American (Alaska Natives, Native Hawaiians, or enrolled members of a federally or state-recognized tribe) applications. However, tribal/Native American applicants (Native American farmers and producers, businesses owned by Native Americans, tribally owned businesses, and tribal governments) will qualify for the reduced 25% match, so long as the business or entity applying for the grant is majority-owned and/or controlled by Native Americans, Alaska Natives, Native Hawaiians, or enrolled members of a federally or state-recognized tribe. Tribal/Native American applicants may also be eligible to receive additional priority points as target beneficiaries of the program.
RFSI is federally funded through a cooperative agreement with USDA-Agricultural Marketing Service. Unlike most grants administered by the MDA, you may use grant funds from another state grant as matching funds for this program. Funds from other state, local, or private grants may be used as matching funds, so long as those funds are not from another federal pass-through grant (such as a Specialty Crop Block Grant) and aren’t committed to another grant as matching funds. Federal grants or funds from any source cannot be used as match.
Note: If you plan to use funds from a state grant or loan to meet all or part of your project’s matching requirement — and if your project involves construction — the Minnesota Department of Labor and Industry will need to evaluate your project to determine if state prevailing wage requirements will apply.
No additional priority is given to applications that include more matching funds than the 50% match requirement or 25% reduced match requirement for qualifying applicants. Even if you plan to spend more than the required matching amount for your project (i.e., “overmatching”), we recommend you only include the required matching amount for the application budget. If you voluntarily provide a match above the program’s requirement in your application, the total becomes a binding requirement in your grant contract agreement.
All matching contributions must be an expense that is eligible under the grant. Purchasing land is not an eligible expense under the grant and therefore it also cannot be used as match.
We encourage you to review the Project Evaluation Profile to understand how applications will be scored. No additional priority is given to projects solely based on the source of their match, but consideration will be made to the applicant’s financial and administrative capacity to carry out the project and the applicant’s ability to accurately track, document, and verify any in-kind contributions provided.