active Federal Grant

SDBII Dairy Business Planning Grant

Southeast Dairy Business Innovation Initiative (SDBII) — University of Tennessee Institute of Agriculture

Up to $30,000 (no match required)

See if you qualify — free Visit official program ↗

The short version

Up to $30,000 reimbursement for planning and learning activities for permitted dairy businesses in 13 Southeast states and Puerto Rico.

The Southeast Dairy Business Innovation Initiative, funded by USDA AMS and based at the University of Tennessee, offers reimbursement grants of up to $30,000 to permitted dairy businesses in the Southeast and Puerto Rico. The Dairy Business Planning Grant covers planning and learning activities such as feasibility studies, business-plan development, succession planning, specialized training, and legal services. There is no match requirement.

Funding type: Grant
Level: Federal
Amount range: $0 – $30,000
Realistic amount: $10,000-$30,000 depending on scope of planning or training project
Deadline: September 23, 2026 at 5:00 p.m. ET
Status: active
States: AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV, PR

Who qualifies

Operate an existing, permitted dairy business (farm or processor) in an eligible Southeast state or Puerto Rico, or have a clear outline of establishing one
Project must diversify dairy product markets, promote business development through processing/marketing innovation, and encourage use of regional milk production
Must be a licensed/permitted dairy business; entities engaged solely in raw milk or raw dairy product sales (except cheeses aged >60 days) are ineligible
Costs must be for planning and learning only; processing equipment and on-farm production expenses are not eligible
Applicants with an open Dairy Business Planning Grant are not eligible; applicants with open Specialty Processing, Farm Infrastructure, or Precision Technology grants may still apply
No immediate family members of the applicant may work as affiliated SDBII staff or faculty

Who is not eligible

Entities engaged solely in raw milk or raw dairy product sales (except cheeses aged >60 days)
Applicants with an open Dairy Business Planning Grant
Businesses seeking funding for processing equipment or on-farm production costs
Applicants with immediate family members working as SDBII affiliated staff or faculty

What it covers

Eligible expenses

Feasibility studies
Business plan development
Succession planning
Specialized training and conferences (e.g., cheese-making short courses, dairy conferences)
Legal services to strengthen business structure or succession plan
Food safety plan development
Consultant and professional services

Ineligible expenses

Processing equipment (pasteurizers, cheese vats, etc.)
On-farm production costs (milking equipment, parlor upgrades, herd health, feed)
Raw milk or raw dairy product sales projects (except aged cheeses >60 days)
Construction and building improvements
Costs incurred before contract execution

How to apply

1

Confirm eligibility and project fit

Review the RFP to ensure the dairy business is permitted in an eligible state and the project is limited to planning/learning activities such as feasibility studies, business planning, or training.

~2 hrs
2

Obtain Unique Entity Identifier (UEI) at SAM.gov

Register or confirm an active SAM.gov UEI; wait times are currently several weeks and a UEI is required before contract execution.

~2 hrs
3

Prepare application narrative and budget

Draft responses to the grant narrative questions and complete the budget workbook. Include quotes, letters of support, and a business plan or feasibility study as required.

~8 hrs
4

Submit via online portal by deadline

Create an SDBII applicant profile and submit the complete application through the Foundant portal by 5:00 p.m. ET on September 23, 2026.

~2 hrs
5

Execute contract and begin project

If awarded, sign the University of Tennessee grant agreement. Do not begin spending on reimbursable costs until the contract is fully executed.

~1 hrs

Insider tip

This grant funds only planning and learning—do not include equipment quotes. If you need processing equipment, apply to the Specialty Processing Equipment Grant instead, but you cannot receive both in the same cycle.

Deadline & timing

Application window opened July 22, 2026. Awards announced before end of November; contracts estimated to be issued mid-January 2027. Project period is January 1, 2027 through December 31, 2027.

Required documents

Completed grant application and budget workbook
SAM.gov Unique Entity Identifier (UEI)
Business plan or feasibility study (if not currently permitted)
Letter from state department of agriculture outlining pathway to permitting (if not currently permitted)
Quotes or estimates for all budgeted items
Letters of support from collaborators

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Researched and verified 2026-08-24 against the official program source. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.