Loans

Affordable, flexible financing

for your farm or food business.

Why fund your business with FoodCap?

We're a non-profit loan fund, not a bank. Our goal is to help you get the resources you need to succeed. We've supported over 100 individual farms and food businesses with financing and have first-hand experience with the unique needs of small-scale, diversified, and BIPOC-led operations.

Customized for
Your Needs

If a loan is right for your business, we'll fit it to your operation, your budget, and your timeline.

Support from
Start to Finish

Nervous about applications? Not a numbers person? We'll walk you through every step.

Flexibility &
Responsiveness

If weather or markets aren't on your side, we'll work with you to find a solution.

General
Eligibility

To be eligible for a loan from Foodshed Capital, all applicants must meet the following criteria:

It's right there in our name. Foodshed Capital's mission is to build more equitable, more regenerative foodsheds. We lend to businesses and organizations that are making meaningful contributions to the foodshed by centering food production, food sales, food access, or otherwise have a clear, direct connection to healthier regional food systems.

Examples 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

Supporting pollinators that make our food systems viable through hive management or pollinator habitat development

In certain cases we may consider applicants producing regeneratively grown flowers or fiber, but operations must also include a food focus of some kind. Food producers and purveyors are prioritized if lending capacity is limited.

Applicants must demonstrate a clear commitment to using regenerative agricultural practices, or partner with or support farmers who do. We support diversified, polyculture operations using practices that protect/restore soil and watershed health, increase biodiversity, manage fertility, and support holistic ecosystem function.

If you're not sure what this means, you may not be a good fit for funding from Foodshed Capital. Here are some resources to build your knowledge:

What is Regenerative?

Climate Smart Practices

Business owners must be able provide a certificate of formation for an LLC, or your EIN number and articles of incorporation for a corporation. Nonprofits must be able to provide their IRS determination letter. We do not lend to individuals. Please note, we only support nonprofits through bridge funding.

Applicants must be able to demonstrate that they are currently or are on track to being compliant with all state and federal laws as they relate to filing income tax and sales tax. Applicants should be able to provide a minimum of two years of tax returns and proof of remitted sales tax, if requested.

It is Foodshed Capital’s mission to ensure our loan funds are available to those who need them most and to those who face difficulty accessing capital through other lenders. We prioritize applicants who can demonstrate financial need, who have been denied financing elsewhere, or face systemic barriers to working with other capital providers. We may consider income from other jobs, regional cost of living, and household composition in determining financial need.

Types of Loans, Terms, and Eligibility

Loan Types, Terms, & Eligibility

Interest Rates

Typical rates range between 0% and 6.75%. Foodshed Capital’s interest rates are a weighted average of the current prime rate and our cost of capital. Our rates prioritize our target market of socially disadvantaged, low-income borrowers in our accordance with our mandated commitments as a Community Development Financial Institution, and those who are actively producing food.

Seed Loans

Get Started

Up to $15,000 for those with practical experience who are ready to launch a farm or food business.

Brand new ventures, or operations less than two years old
Minimum of two full seasons of production experience on an established working farm for those seeking to launch a farm business, with strong references
Minimum of one full year of related experience for those seeking to launch another kind of food business
Capacity to clearly articulate realistic financial projections
Demonstrated commitment or connection to regenerative food production
Proof of relevant business registrations
If already in operation, ability to demonstrate tax compliance (income, sales, and payroll tax, if applicable)
Demonstrated financial need or barriers to accessing financing elsewhere. We may consider income from other jobs, regional cost of living, and household composition in determining eligibility.

Amount: $15,000 maximum
Rates: Between 0% and 6.75%. BIPOC borrowers actively producing food will not pay more than 1.5%.
Term: 3 - 4 years
Grace Period: Optional grace period of 6 months before first payment is due

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.
Transition & Enhancement: Enhancing or improving the business’ ability to operate regeneratively and incorporate sustainable practices, especially for farmers who will operate a new farm that has previously been operated conventionally. Please note: we do not provide support with land purchase at this time.
Employees & Farmhands: Hiring staff to accommodate the operation’s labor needs.

2 years of personal tax returns (past or non-farm income are considered when evaluating need and repayment capacity)
1-2 years of business tax returns, if available
Narrative description of marketing plan, projected revenue streams, and any existing sales relationships if available
Statement of 1/3/5 year goals for your business and how funding from Foodshed Capital will advance those goals
2 years of cash flow projections
Top line personal budget

Microloans

Get Started

Up to $25,000 for existing business owners to expand production or streamline operations.

Minimum of two years in operation
Primary focus on food
Demonstrated commitment or connection to regenerative food production
Proof of relevant business registrations
Ability to demonstrate income, sales, and payroll tax compliance
Demonstrated financial need or barriers to accessing capital elsewhere. We may consider income from other jobs, regional cost of living, and household composition in determining eligibility.
Active marketing and sales channels such as website, social media, newsletter, CSA, wholesale accounts, or similar

Amount: $25,000 max. Loan size cannot exceed previous year of revenue
Rates: Between 0% and 6.75%. BIPOC borrowers actively producing food will not pay more than 1.5%.
Term: 3 years
Grace Period: Optional grace period of 3 months before first payment is due

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.
Transition & Enhancement: Enhancing or improving farm operations, deepening commitment to regenerative agriculture or conservation practices, or transitioning away from conventional practices. Please note: we do not provide support with land purchase at this time.
Employees & Farmhands: Hiring additional staff to expand operations and increase efficiency.

2 years of profit and loss (P&L) reports
2 years of balance sheets
2 years of personal tax returns (non-farm income is considered when evaluating need and repayment capacity)
2 years of business tax returns
Narrative description of marketing channels and existing/projected revenue streams
Short statement of 1/3/5 year goals for your business and how funding from Foodshed Capital will advance those goals
Off-farm income may be included in debt service
Top line personal budget
Cash flow projections through the end of the loan term

Sprout Loans

Get Started

$15,000 - 50,000 loans for established farms or food businesses ready to grow.

Minimum of two years in operation
Primary focus on food
Demonstrated commitment or connection to regenerative food production
Proof of relevant business registrations
Ability to demonstrate income, sales, and payroll tax compliance
Demonstrated financial need - we may consider income from other jobs, regional cost of living, and household composition in determining eligibility. Inability to access financing elsewhere can override this requirement.
Active marketing and sales channels such as website, social media, newsletter, CSA, wholesale accounts, or similar

Amount: $25,000 - $50,000. Loan size cannot exceed previous year of revenue
Rates: Between 0% and 6.75%. BIPOC borrowers actively producing food will not pay more than 1.5%.
Term: 3 - 5 years
Grace Period: Optional grace period of 3 months before first payment is due

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.
Transition & Enhancement: Enhancing or improving farm operations, deepening commitment to regenerative agriculture or conservation practices, or transitioning away from conventional practices. Please note: we do not provide support with land purchase at this time.
Employees & Farmhands: Hiring additional staff to expand operations and increase efficiency.

2 years of profit and loss (P&L) reports
2 years of balance sheets
2 years of personal tax returns (non-farm income is considered when evaluating need and repayment capacity)
2 years of business tax returns
Top line personal budget
Narrative description of marketing channels and existing/projected revenue streams
Short statement of 1/3/5 year goals for your business and how funding from Foodshed Capital will advance those goals
Off-farm income may be included in debt service
3 years of cash flow projections (link to financial template?)

Harvest Loans

Get Started

Up to $150,000 for seasoned business owners looking to scale up or make significant expansion investments.

Minimum of five years in operation
Primary focus on food
Demonstrated commitment or connection to regenerative food production
Proof of relevant business registrations
Ability to demonstrate income, sales, and payroll tax compliance
Demonstrated financial need - we may consider income from other jobs, regional cost of living, and household composition in determining eligibility
Active marketing and sales channels such as website, social media, newsletter, CSA, wholesale accounts, or similar

Amount: $50,000 - 150,000. Loan size cannot exceed previous year of revenue
Rates: Between 0% and 6.75%. BIPOC borrowers actively producing food will not pay more than 1.5%.
Term: 5-7 years
Grace Period: Optional grace period of 3 months before first payment is due
We reserve the right to request collateral on any loan, but loans will only be secured with assets purchased directly with financing from Foodshed Capital.

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.
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.
Please Note: We do not provide support with land purchase at this time.

3 years of profit and loss (P&L) reports
3 years of balance sheets
3 years of personal tax returns (non-farm income is considered when evaluating need and repayment capacity)
3 years of business tax returns
Top line personal budget
Narrative description of marketing channels and existing/projected revenue streams
5 years of cash flow projections
Short statement of 1/3/5 year goals for your business and how funding from Foodshed Capital will advance those goals
Off-farm income may be included in debt service. Land projects will be evaluated on a case by case basis.

Bridge Funding

Get Started

Up-front capital for farmers or non-profit food organizations who have received reimbursable grant funding.

Primary focus on food
Demonstrated commitment or connection to regenerative food production
Proof of relevant nonprofit registrations

Typical range: $5,000 - $50,000. Please contact us for bridge loans beyond this range.
Rates: Between 0% and 6.75%. BIPOC borrowers actively producing food will not pay more than 1.5%.
Term: Repayments are structured to reimbursement. Typically payable in full upon project completion.

Supporting up-front capital needs to complement grant funding from state or federal agencies in the case that the grant requires a purchase before reimbursement, or in the case of a matching or cost share grant where you must cover a portion of the cost of your project. Example uses include but are not limited to:
Grant-Funded Equipment & Infrastructure: Such as high tunnels, wells, livestock exclusion fencing, or other season extension or climate-smart infrastructure
Transition & Enhancement: Enhancing or improving farm operations, deepening commitment to regenerative agriculture or conservation practices, or transitioning away from conventional practices.
Please Note: We do not provide support with land purchase at this time.

2 years of profit and loss (P&L) reports
2 years of balance sheets
2 years of business tax returns
Cash flow projections, if requested
Award Letter(s)
Narrative description of marketing channels and existing/projected revenue streams for farm businesses

The Loan Process

1. Intake Form

This short form takes 10-15 minutes to complete and helps determine if Foodshed Capital’s services are aligned with your needs. It also helps us identify folks who are not eligible for lending. If that’s the case, we'll connect you with our Business Support program or recommend another lender.

3. Full Application

If your financials are in good shape, we'll open up

the rest of the application. You'll be able to share all

the nitty gritty details about your farm, your business, and the specific ways you would use the loan funds you’re requesting. The full application will take a little longer, but don’t worry - you can save your work as you go and complete it in sections as you have time. Once the application is complete, we’ll schedule a 60 minute meeting to get to know each other and learn all about your business.

2. Upload Documents

Next you'll upload financial reports, tax filings,

and other documents to help us determine your financial capacity to take on a loan and successfully manage repayment. If you have these things on hand, this step should only take 10-15 minutes.

If the documents we ask for seem unfamiliar or overwhelming, never fear! You might not be ready

to apply for a loan, but we’ll connect you to our Business Support program, where other members of our team will help you prepare to apply for a loan from FoodCap or another lender.

4. Underwriting

Now the FoodCap Lending Team takes over. We’ll analyze all your materials to ensure a loan will be of service to you. During this time we’ll meet virtually or on the phone for one hour at least once, and up to three times, to discuss your business, your financials, and your future. If we find that it’s taking longer than anticipated to gain clarity around the business structure and financials, we may defer your application until next quarter and connect you with our Business Support team.

5. Closing

This is where things start wrapping up! Closing your loan entails signing documents and setting you up for success during the repayment period. We’ll also get your bank account connected so we can deposit your funds and auto draft repayments. Anticipate a one hour meeting to go through the closing docs and talk about the future.