FREQUENTLY ASKED QUESTIONS
AM I ELIGIBLE FOR A FOODCAP LOAN?
All applicants for a loan 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.
IN WHICH STATES DOES FOODCAP OFFER LOANS?
Currently, Foodshed Capital offers farm loans in Virginia, Maryland, DC, North Carolina, Pennsylvania, New York, Delaware, and West Virginia and is expanding to states up and down the East Coast. Please contact us if you have questions about your location.
CAN I GET A LOAN WITH A BAD CREDIT SCORE?
Foodshed Capital does not credit check or pull credit reports.
Credit scores are removed from our underwriting process.
DOES FOODCAP LEND START-UP CAPITAL TO NEW 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 BUY FARMLAND?
We are currently evaluating our approach to financing land, but in the meantime, we are open to speaking with people looking for farmland. Land access is an important part of our mission and a component of our strategic vision for 2023.
HOW MUCH CAN I BORROW AT A 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 YOUR 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 ARE THE INTEREST RATES FOR A FARM LOAN?
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 through our Black Farmer Equity Fund.
WHAT DOCUMENTS DO I NEED TO BORROW A 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, and any social media links.
IS A 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 READY FOR A LOAN?
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 planning and strategy.