Support our campaign for BIPOC land security!
Apply for a Loan
Fund your regenerative farm or food business in three easy steps.
Don't worry if paperwork isn't your strong suit—we've made the loan application as simple as possible, and our team is here to support you along the way.
1 / Read
Read through our eligibility details, lending principles, loan details, and partnership pledge below.
2 / Apply
Complete and submit your loan application by one of our four quarterly loan deadlines.
3 / Standby
Wait for us to contact you. It typically takes us no more than a week to respond.
Eligibility
To qualify for our loan program, applicants must:
-
Be at least 18 years old
-
Own and operate a small- to mid-scale food producing farm or a food business that supports local, regenerative agriculture
-
Have a business that is registered in a state as either an LLC or a corporation (we do not lend to individuals)
-
Demonstrate sufficient financial need
-
Articulate in the application that their work contributes to more regenerative foodsheds.
Lending
Principles
Prioritize Equity
Foodshed Capital’s loan fund is designed to make capital more accessible for those who have been underserved by historically extractive and discriminatory financing systems, specifically:
-
Those with low-income or limited assets
-
BIPOC individuals
-
Immigrants
-
Women and non-binary people
Prioritize Regeneration
To qualify for a loan, applicants must run operations dedicated to using regenerative practices. We look for agricultural practices that increase biodiversity, enrich soils, protect and restore watershed health, capture more carbon than they emit, and support ecosystem function.
Learn more about the vital connection between regenerative agriculture and climate here:
Prioritize Food
It's right there in our name. Strong applicants must contribute to their local foodshed in some way. This can include:
-
Production of nutrient-dense, culturally appropriate vegetables, meat, eggs, fruit, fish, grains, or dairy products
-
Creation of value-added food products using locally produced, regeneratively grown foods
-
Processing or distribution of locally produced, regeneratively grown foods
In certain cases we may consider applicants producing regeneratively grown flowers or fiber, particularly if they are in some way supporting their local foodsheds through markets or cooperatives, but food producers and purveyors are prioritized if lending capacity is limited.
Loan Details
Loan Size
Current loan range is $5,000 - $50,000. We may consider larger loans depending on your circumstances and project goals. Please contact us to discuss.
Rates
A typical interest rate is 4%, or 3.5% for borrowers enrolled in autopay. Black farmers are eligible for 0% interest loans. Other rate reductions may be available based on your circumstances.
Terms
Typical terms are 3-5 years with a 3-month grace period and monthly repayments. We are happy to discuss terms that better align with your needs, particularly for larger loans.
Collateral
We do rarely collateralize loans under $50,000. We do reserve the right to request collateral on any loan, but loans will only be secured with assets purchased directly with financing from Foodshed Capital.
Footprint
We are Virginia-based and most of our lending is in the Mid-Atlantic. We are expanding our footprint up and down the East coast in partnership with mission-aligned organizations and have closed loans from Georgia to New York. Please contact us if you have questions about the eligibility of your location.
Use of Funds
Equipment & Infrastructure
Including but not limited to processing, refrigeration, storage, livestock shelters, buildings, fencing, tractors, irrigation, hoop houses/high tunnels, tractors, roller crimpers, etc.
Working Capital
Purchasing seeds, livestock, inventory; covering costs related to marketing or bookkeeping; paying for vehicle or farm insurance expenses; etc.
Bridge Loans
Complementing grant funding from federal or state agencies by bridging the gap between grant approval and receipt of funds. Bridge loans are typically payable in full upon project completion.
Transition & Enhancement
Enhancing or improving farm operations, deepening commitment to regenerative agriculture or conservation practices, or transitioning away from conventional practices.
Employees & Farmhands
Hiring additional staff to expand operations and increase efficiency, but not to sustain an otherwise underperforming business.
Partnership Pledge
Our unconventional approach to lending means we shoulder more of the risk that comes with producing and selling food in a changing climate. The key distinction between our approach and others is that we rarely rely on collateral, which makes us very unique in the lending space.
In order for this approach to work, we rely on the borrower’s mutual commitment to the loan partnership. We want to see farm operations succeed, and we need to demonstrate our impact in order to continuously fund our work. Upholding the partnership is how our borrowers help "pay it forward" to more farmers down the line. In the spirit of this two-way street, we ask all borrowers to sign a good faith pledge that they will:
-
Communicate with us in a timely fashion
-
Work with us on business strategy both before and after a loan has closed
-
Provide us images of the operation and/or farm owner(s) to share with our supporters
-
Publicly share documentation of loan funds at work
-
Be prompt in returning any requested financial reports or impact questionnaires throughout the loan term.
We take this partnership seriously, and we work with borrowers who agree to take it seriously too. Please consider this ongoing partnership and how we can best serve you as you complete your application.
Application Deadlines
JANUARY 1 for end of March disbursement
APRIL 1 for end of June disbursement
JULY 1 for end of September disbursement
OCTOBER 1 for end of December disbursement
Applications not completed by these dates may still be considered for funding in a future quarter. If you have a need that's urgent, please contact us to discuss.