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Can funds be used for a general “buy local” program for all agricultural products?
No, grant funds must solely enhance the competitiveness of eligible specialty crops.
Are there restrictions on using grant funds for advertising, marketing materials for promotion, or for physical structures used in promotion?
Grant funds can be used for advertising and marketing materials as long as they solely promote the competitiveness of eligible specialty crops.
Capital expenditures for general purpose equipment, buildings, and land are unallowable as direct and indirect charges. Capital expenditures for special purpose equipment are allowable as direct costs, provided that items with a unit cost of $5000 or more have the prior approval of AMS.
Will States be allowed to submit plans which expend only a portion of the amount allowed, then submit another proposal or amendment before the application deadline for the remaining funds?
We encourage States to submit only one State plan before the application deadline showing how all grant funds available to that State will be expended on projects. Once USDA approves a State’s plan, a grant agreement is signed and the grant period begins. Due dates for the annual performance reports and the financial audit are based on this grant period. If a State submits a second proposal, a second grant period would start, and the state would have to submit additional performance reports on this grant period and conduct a second financial audit.
Will funds dispersed to subgrantees have to be included in the State plan?
Yes. All SCBGP projects have to be included in the State Plan according to program regulations.
If a State is soliciting proposals from grant partners, can the State’s plan generally explain that a State will be disbursing funds to grant partners who have qualifying proposals or does the State need to include each of the proposals and work plans in an overall state proposal?
The State should solicit proposals for projects that solely enhance the competitiveness of specialty crops, review the proposals for eligibility, technical/programmatic, and budgetary criteria, select the qualifying proposals, and then submit those projects in the State plan in accordance with State plan requirements.
How soon will USDA review applications and what happens if a project is rejected?
USDA will review applications as soon as possible after the application is received. USDA may request additional information or clarification on projects and will assist applicants in meeting application requirements.
Does a State have to use grant funds for administrative expenses?
No. A State does not have to expend grant funds for administrative expenses.
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