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Business Builder
Awardee Training

Overview

The Northwest & Rocky Mountain Regional Food Business Center’s Business Builder Grants Program offers funding to farm and food businesses to help strengthen their operations and overcome challenges related to market access and growth. This page outlines the next steps for grant awardees.

By reviewing the information provided here, you are completing the required training you agreed to in your grant (subaward) agreement with the Center.

Step 1: Sign your Official Agreement

As a part of our commitment to USDA Agricultural Marketing Services (AMS), if your application is approved and recommended for an award, you will be sent an agreement through Docusign for your review and signature. From a procedural standpoint, this is a subaward agreement that is distributed by one of the co-leads of the Center, Oregon State University.

The grant agreement includes the following:

    • Applicant Information – Business Name, UEI, EIN, etc.
    • Oregon State University Subaward Number – This is important to keep on file!
    • Project Information and Attachments
    • Key Dates – Project Start/End, Progress Reports, etc.
    • Instructions – Submitting payment requests, including the types of documentation we will need to see to reimburse project expenses.
    • Terms and Conditions – Including additional requirements for equipment purchases.
    • W-9 Form – This is necessary to ensure you are registered to receive payment under Oregon State University’s system.

Below are examples of how your Subagreement and W-9 form should be completed, along with key notes. Please review them carefully to understand where and how to fill out each section correctly.

Subagreement.pdf by NW Rocky Mt. Regional Food Business Center
w9.pdf by NW Rocky Mt. Regional Food Business Center

Step 2: Reporting

If your project has been approved, it is because it aligns with the goals of the grant program and follows our guidelines. Therefore, all expenses must adhere to your pre-approved project budget throughout the continuation of your project.

Once you have signed your official agreement and completed the necessary intake forms, you may begin your project. This agreement includes specific reporting deadlines, so please review it carefully. As you will see in the agreement, you are required to submit a progress report every three months (quarterly) through Submittable, the same platform used to apply. As each deadline approaches, you will receive access to submit your report during the designated reporting window.

Each progress report has two sections:

  • Project Update: A written summary of your project activities over the past three months, along with photos documenting your progress.
  • Financial Reporting: This is where you will provide documentation of your expenses and submit an invoice for reimbursement.

Submitting progress reports on time is mandatory. Failure to do so violates your grant agreement and could jeopardize your funding.

More details about the reimbursement process are provided in the next section.

Progress Report by NW Rocky Mt. Regional Food Business Center

Step 3: Reimbursement Process

Like many state and federal grants, the Business Builder programs are “reimbursement” grants. With a reimbursement grant, you must pay for pre-approved project expenses upfront, and then submit documentation along with the progress report in order to be reimbursed.

In the Financial Reporting section of the Progress Report, you will fill out an invoice, including specific expenses and the total amount requested per category, and submit receipts or other documentation of those expenses. Your submitted report will be reviewed by the Business Builder team and Oregon State University. Once your report is approved, OSU will mail a check for the total request to your business address within 30 days of the reporting deadline. If we need more information from you, the Business Builder team will contact you.

Reimbursements and Progress Reporting are done at the same time, on a quarterly basis. Please review your subagreement to ensure you are aware of these key dates for reporting.

Acceptable Receipts Key Notes + Considerations by NW Rocky Mt. Regional Food Business Center

Other Reimbursement Options

We know some businesses don’t yet have the cash flow for a reimbursement grant, especially if they plan to use grant funds to buy an expensive piece of equipment. If that’s your situation, you have options.

If your approved grant project budget includes an expensive piece of equipment, you don’t need to lay out all the cash in advance.

  1. Get a signed, binding quote from the equipment dealer you’re planning to use.
  2. Submit that to us (through Submittable) as documentation of your (future) expense.
  3. We’ll process your payment for that amount.
  4. When you receive your payment, buy the equipment.

Short-Term Financing: A low-interest loan or line of credit can bridge the gap. Your signed grant agreement, with a reporting and payment schedule, is a legal document that shows the lender you’ll be successful in paying off your loan. Your success with a loan will also increase your credit score for future financing.

For smaller grants, a local or community bank may offer signature loans, sometimes without requiring a very high credit score. Utilizing a credit card with a promotional low or zero interest rate is another option. This option comes with a higher level of risk as the entire balance must be fully paid before the end of the promotional period to avoid expensive penalties. The size of the loan or line of credit needed will determine the credit requirements, and this can be different from bank to bank. Plan to shop around and check with both banks and credit unions.

Larger loans (for example, above $10,000) will have more stringent requirements, but some lenders also offer business support. Farm Credit bank loan products may be a good fit. AgWest, for example, has loan programs for new and beginning farm businesses that come with business support.

A great first place to start is with the bank you use for your business, your business mentor if you have one, and any trade groups or networks you participate in.

Your local Small Business Development Center can help you find banks that offer Small Business Administration (SBA) backed loans. SBA-guaranteed loans can be used by businesses that have trouble getting traditional bank loans. With these loans When a bank thinks your business is too risky to lend money to, the U.S. Small Business Administration (SBA) can agree to guarantee a loan that banks would typically deny because of high risk of default. That way, the bank has less risk and is more willing to give your business a loan.

Use Lender Match to find lenders who offer SBA-guaranteed loans.

Community Development Financial Institutions, or CDFIs, and philanthropic foundations may also provide bridge loans. As we learn about potential CDFI and foundation partners, we will share that information in info sessions about our grant programs. For more information about loans and lenders for farm and food businesses, visit the “resources” section of our NWRM Right-Sized Infrastructure and Investing page.

Advance payments are available for equipment purchases only. For the Center, Equipment means tangible property with a useful life of more than one year and an acquisition cost of $5,000 or more per unit.  

If you are selected for a grant and have equipment that has been approved, you can request an up-front payment by submitting an invoice for that amount, with a binding quote or contract as documentation. To do this, you will see a form assigned to you within Submittable called “Optional: Advance Payments for Equipment”. Once you’ve completed this form, funds will be dispensed to you to complete the purchase. 

Following the next progress report, you will be required to submit documentation of this purchase (such as a receipt). 

Step 4: Grant Close Out

The Grant Close Out period is a crucial phase for Business Builder grants, designed to ensure that all awarded funds have been fully and properly spent according to your approved budget. During this time, you will complete a Grant Close Out checklist that helps confirm you have submitted all the necessary documentation and met all requirements outlined in your grant subagreement.

The Close Out period begins on your project start date and lasts for one year. It is important that you stay informed about all key deadlines and dates specified in your grant subagreement to avoid any issues.

In addition to completing the Grant Close Out checklist, you are also required to submit your final progress report. This report should summarize your overall project outcomes, provide final financial documentation, and include any remaining deliverables or evidence of project completion.

Completing these steps thoroughly ensures the successful closure of your grant and compliance with the terms of your agreement.