CASE STUDY
BAF Florida, LLC
$25MM
USDA B&I
Project Overview
BAF Investments, LLC, BAF Holdings, LLC, and BAF Florida, LLC (together, “BioActive Forages”) are developing an animal feed pellet production facility on nearly 10 acres in Madison County, Florida.
The project includes facility construction and the installation of equipment to produce premium composite pelletized feed made from a proprietary blend of ingredients. The loan is structured as a construction-to-permanent loan, with conversion to permanent terms following the completion of construction. The loan use includes improvements, equipment, working capital, and soft costs.
Underwriting was supported by supply and offtake letters of intent, reflecting strong demand for the project. The project will create 40 new jobs and preserve three existing jobs, adding skilled roles in value-added agriculture and rural manufacturing.
Value-Driven Financing Solution
X-Caliber Rural Capital closed a $25MM USDA B&I loan as part of a New Markets Tax Credit (NMTC) structure for BioActive Forages. The financing supports facility construction, equipment, and working capital.
The capital mix includes:
USDA B&I Senior Loan: $25MM
The USDA guaranteed loan provides long-term financing for a specialized agricultural manufacturing facility in a rural county. The guarantee supports lender appetite for a larger position and allows repayment to track the useful life of the plant and equipment and the time needed to move from commissioning to stable throughput and earnings.
New Markets Tax Credits
An allocation of $13.7MM resulted in BioActive Forages’ capital stack including $11MM in NMTC proceeds. These funds enhance the financing package by reducing effective leverage and helping satisfy equity requirements, which is especially valuable for rural operators whose businesses drive economic activity in areas with limited opportunities.
Together, these components turn a high CapEx rural build into a financeable plan: long-term senior debt backed by USDA, NMTC proceeds that improve the project’s economics and satisfy the equity load, and complementary tools that support both delivery and long-run viability. The structure keeps the full project scope intact, supporting two production lines and meaningful working capital rather than forcing a smaller plant or thin liquidity under a conventional-only approach.
Together, these components turn a high CapEx rural build into a financeable plan: long-term senior debt backed by USDA, NMTC proceeds that improve the project’s economics and satisfy the equity load, and complementary tools that support both delivery and long-run viability. The structure keeps the full project scope intact, supporting two production lines and meaningful working capital rather than forcing a smaller plant or thin liquidity under a conventional-only approach.
Key Benefits
- Combines USDA B&I, NMTC, and equity to align long-lived assets and a multi-year ramp with patient, program-aligned capital.
- Supports delivery of the development plan: two production lines and $8MM in working capital to serve supplier and customer commitments.
- Creates 40 new jobs and preserves three jobs in Madison County, expanding the regional agricultural value chain and the area’s core economic engine.
“X-Caliber Rural Capital helped us put together a USDA B&I loan alongside New Markets Tax Credits in a way that worked for our project and kept the financing straightforward. That gave us the support we needed for our facility, equipment, and working capital so we could move ahead with the project.”
Greg Stewart
Co-Founder | BioActive Forages
Reach out to your USDA loan officer or email info@xrcusda.com for more information.
