7 CFR § 4284.925 - Allowable uses of grant and Matching Funds.

---
identifier: "/us/cfr/t7/s4284.925"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 4284.925 - Allowable uses of grant and Matching Funds."
title_number: 7
title_name: "Agriculture"
section_number: "4284.925"
section_name: "Allowable uses of grant and Matching Funds."
chapter_name: "RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "4284"
part_name: "GRANTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301 and 7 U.S.C. 1989.Subpart F also issued under 7 U.S.C 1932(e)."
regulatory_source: "62 FR 42387, Aug. 7, 1997, unless otherwise noted."
cfr_part: "4284"
---


# 4284.925 Allowable uses of grant and Matching Funds.

(a) *Planning grants.* Funds may only be used to pay a Qualified Consultant to conduct and develop a Feasibility Study, Business Plan, and/or Marketing Plan associated with the post-harvest processing and/or marketing of a Value-Added Agricultural Product.

(b) *Working capital grants.* Funds may be used to pay the Project's eligible post-harvest operational costs directly related to the processing and/or marketing of the Value-Added Agricultural Product. Examples of eligible working capital expenses include purchasing a financial accounting system for the Project; paying salaries of employees (excluding owners and Immediate Family) to process and/or market and deliver the Value-Added Agricultural Product to consumers; paying for additional Agricultural Commodity inventory (less than 50 percent of the amount required for the Project) from an unaffiliated third party, necessary to produce the Value-Added Agricultural Product; paying for a marketing campaign for the Value-Added Agricultural Product; paying costs incurred in obtaining post-harvest Food Safety certification; and using up to $6,500 of the amount of a grant to purchase or upgrade post-harvest Equipment to improve Food Safety.