Frequently Asked Questions
Am I eligible for a FoodCap loan?
All loan applicants must be at least 18 years old, own and operate a small to mid-scale food-producing farm or food business, be registered in a state as an LLC or a corporation, and articulate how their work contributes to more regenerative foodsheds.
Is my location eligible for a FoodCap loan?
Foodshed Capital is currently lending in from Georgia to New York. Please contact us if you have questions about your location.
Can I get a FoodCap loan with a bad credit score?
Foodshed Capital does not pull credit scores, nor are credit scores a component of our underwriting process. We do take careful steps to make sure you are prepared to manage debt, including looking closely at your revenue projections and marketing strategies.
Does FoodCap lend start-up capital to beginning farmers?
Applicants must have a registered business to qualify for funding. Although several years' experience makes you a stronger candidate for lending, we are happy to connect new farmers with resources and business support.
Can I use a FoodCap loan to purchase farmland?
We are working hard to expand our capacity to finance land purchases. Land security is an important part of our mission and a component of our strategic vision for 2023, so please reach out if you're working towards land ownership and seeking funding.
How much can I borrow from FoodCap at one time?
Typically our lending minimum is $5,000 and maximum is $50,000. We are now considering larger loans for farmland purchases depending on your circumstances and long-term goals.
What are FoodCap's typical loan terms?
Typical loan terms are 3-5 years with a 3-month grace period and monthly repayments. Because we prioritize flexibility, we are happy to discuss terms that fit your needs.
What kind of interest rate can I expect?
Standard interest rate is 4%, and 3.5% for borrowers enrolled in auto-pay. Rate discounts are available under certain circumstances. Black farmers are eligible for 0% interest loans.
What documents do I need to get a FoodCap loan?
You will need your most recent tax returns, personal and/or business, an outline of your farm's income and off-farm income, your EIN or social security number, web address, a few good quality photographs, and any social media links.
Is farm loan interest tax deductible?
Yes, a farm loan interest is tax deductible as a business expense on a Schedule F.
Can FoodCap help me if I'm not yet ready to take on debt?
Yes! Whether you receive a loan or not, we are happy to share resources with you to get you on track for loan readiness. We also periodically offer zero-cost workshops tailored to the needs of small farmers, and can connect you with partners who offer one-on-one business support.