What is the Sugar Storage Facility Loan program?
FSA lists Sugar Storage Facility Loans alongside Farm Storage Facility Loans on farmers.gov, as part of the storage loan category. The program is funded through the Commodity Credit Corporation and administered by FSA, and it helps processors pay for storage and handling facilities.
If you grow beets or cane but do not process them, the general Farm Storage Facility Loan page is a better starting point. Ask your FSA office which program fits.
Because the program serves a small group of borrowers, county offices may see few of these requests. Start by asking who handles them and whether your state office should be involved.
Who is eligible?
According to an FSA fact sheet dated March 2011, eligible borrowers are processors of domestically grown sugarcane and sugar beets. Applicants must show sound credit and repayment ability, no overdue federal debt and a need for more storage. They must also meet local zoning and building rules, carry all-peril property insurance and flood coverage where it applies, complete an environmental assessment, and be approved by CCC to store sugar owned by or pledged to it.
Because the fact sheet is older, confirm each requirement with FSA.
The drug-related conviction rule and the CCC storage approval are examples of requirements that go beyond usual lending questions. Read the whole list with your attorney before you spend money on design.
What can the loan finance?
The fact sheet says loans cover buying and installing storage and permanently fixed handling equipment, or remodeling existing facilities. Listed items include new bins or silos for raw or refined sugar with a useful life of at least 15 years, flat storage with a permanent concrete floor and bulkheads, storage for in-process sugar, integral electrical equipment, quality-monitoring equipment and concrete foundations and site work.
Quality-monitoring gear on the list is a reminder that the loan supports storage that protects the product, not only the building itself.
- Bins and silos with a long useful life
- Flat storage with a permanent concrete floor
- Moisture testers and heat detectors
- Foundations, aprons, pits and pads
What are the terms and rate?
The maximum term is 15 years with no extensions, and repayment is in equal principal-plus-interest installments due no later than the last day of each 12-month period. The fact sheet says the interest rate is the Treasury rate for a comparable maturity on the approval date, fixed for the life of the loan.
FSA's October 2026 lending rates announcement listed a 15-year sugar storage rate of 5.125 percent. Rates are announced monthly, so check the current release.
Because the rate is fixed at approval, timing matters. A delay between your application and approval could change the Treasury rate used, so ask how the date is determined.
How much can I borrow, and what collateral is needed?
The fact sheet sets maximum principal at 85 percent of the net cost of the storage or handling equipment. The applicant pays the difference, called the down payment, to the supplier or contractor before disbursement. The loan needs a promissory note and security agreement, with a security interest in the facility. If needed, additional security is required so that total security equals 125 percent of the loan amount. Acceptable extra security includes real estate, chattels, crops in storage and other assets.
Think about what the 125 percent security rule means for your balance sheet. Pledging real estate or stored crops to FSA limits what you can offer another lender, so coordinate with your bank.
What does the timeline look like?
Construction and delivery of parts generally cannot start before loan approval, the fact sheet says, and approvals expire eight months after the approval date unless extended. Funds are disbursed only after construction, final cost documentation, net cost determination and an FSA inspection.
That sequence means you need your contractor and supplier schedules lined up before you ask for approval.
Eight months can pass quickly with permitting, supplier lead times and weather. Build a schedule with a buffer before you accept approval.
What should a processor ask FSA?
Ask whether the fact sheet reflects current rules, what environmental review is needed and how long it takes, how the CCC storage approval works, what security FSA will accept and what documents the final inspection needs. Also ask how the loan fits with any CCC sugar loan your business uses.
Bring your attorney and your lender into the conversation early. A loan like this is a business financing decision, not a routine farm request.
Key takeaways
- The program serves processors of domestic sugarcane and sugar beets.
- Terms run up to 15 years at a fixed rate tied to a Treasury rate on approval.
- Loans can cover up to 85 percent of net cost, with security at 125 percent of the loan.
- Do not start construction before approval, and confirm current rules with FSA.
Sources and official links
Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.