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.
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Examples include:
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Production of nutrient-dense, culturally appropriate vegetables, meat, eggs, fruit, fish, grains, or dairy products
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Creation of value-added food products using locally produced, regeneratively grown foods
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Processing or distribution of locally produced, regeneratively grown foods
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Supporting pollinators that make our food systems viable through hive management or pollinator habitat development
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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.​
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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:
Applicants should be able to demonstrate business structure through an incorporated business entity (like an LLC, S-Corp, or 501(c)3) that is active and in good standing, or through Profit and Loss from Farming (Schedule F) attachments filed with the IRS. Please note: we do not lend to individuals who cannot demonstrate business structure and profit motive.
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For early-stage businesses, a minimum of two full seasons of practical production experience on an established working farm similar to proposed venture is required. Managerial experience will be taken into account.
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Minimum of one full year of related practical and managerial experience for those seeking to launch another kind of food business
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Please note: businesses without historical financials and sufficient experience are eligible for a maximum of $15,000 in financing, unless they have received a grant award and are applying for bridge financing.
Standard loan applicants should be able to provide the last two years tax returns, or documentation of any extensions if most recent return is not yet completed. All applicants must also be able to demonstrate they are up to date, or on track to be, with sales and payroll tax, if applicable.
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.
Loan Types, Terms, & Eligibility
Interest Rates
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 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.​ ​​
Average interest rate in 2024 was 1.88%.
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BIPOC borrowers who are actively producing food will never pay more than 1.5%.
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Amount: Up to $150,000, or up to $15,000 for businesses without historical financial records. Loan size cannot exceed previous year of revenue.
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Rates: Between 0% and 6.75%. BIPOC borrowers actively producing food will not pay more than 1.5%
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Term: 3 - 7 years
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Grace Period: Optional grace period of 3 months before first payment is due
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Collateral: 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. To date, we have only secured collateral on one loan.
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Equipment & Infrastructure: Including but not limited to processing, refrigeration, storage, livestock shelters, buildings, fencing, tractors, irrigation, hoop houses/high tunnels, tractors, roller crimpers, etc.
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Working Capital: Purchasing seeds, livestock, inventory; covering costs related to marketing or bookkeeping; paying for vehicle or farm insurance expenses; etc.
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Transition & Enhancement: Enhancing or improving the business’ ability to operate regeneratively and incorporate sustainable practices
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Employees & Farmhands: Hiring staff to accommodate the operation’s labor needs or expand
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Please Note: Loan funds cannot be used for land purchase at this time.
Be prepared to provide:
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2 years of profit and loss (P&L) reports
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2 years of balance sheets
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2 years of personal tax returns
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2 years of business tax returns (if applicable)
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Top line personal budget​
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Inability to provide historical financials does not disqualify an applicant from lending, but may limit the size of the loan for which they can be approved.
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Amount: Up to $150,000
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Rates: Between 0% and 6.75%. BIPOC borrowers actively producing food will not pay more than 1.5%.
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Term: Repayments are structured to reimbursement. Typically payable in full upon project completion.
Loan funds must be used for reimbursable expenses specified in grant award.
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Please Note: Bridge loan funds cannot be used for land purchase at this time.
Be prepared to provide:
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Proof of grant award and associated documents, including signed contracts and grant budgets
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2 years of business tax returns
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2 years of personal tax returns if not a 501(c)3
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2 years of 990 or 990n filings if a 501(c)3
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Most recent audit for nonprofits with annual budgets over $1,000,000​
The Loan Process
1. Intake
This is where we learn about YOU! You’ll have an opportunity to share the history and mission of your farm or food business, talk about your plans for growth, and explain your capital needs. You’ll also be asked to upload your tax returns as well as your business’s historical financial reports - if you have them. Intake is how we determine if Foodshed Capital’s services are aligned with your needs, and also helps us identify folks who are not eligible for lending. If that’s the case, we’ll do our best to connect you with a business support organization or recommend another lender.
3. Underwriting
Now the Foodshed Lending Team takes over. We’ll analyze all your materials to ensure a loan will be of service to you, that repayment amounts align with your financial capacity, and that debt is a smart choice in growing your business. If all the math checks out, your loan will be approved!
2. Document Development
Once Intake is completed, Foodshed staff will work with you to develop all the materials you need to apply for a loan. We’ll team up to translate your business vision into the tools and templates needed to consider your business’s ability to take on a loan, also known as the “underwriting” process. If your business is established and you have solid bookkeeping practices, organized financial reports, and a clear understanding of enterprises and sales channels, this process can move fairly quickly. If you’re just starting out, or if your business is growing in new and exciting ways, this may take longer.
4. Closing
This is where things start wrapping up! The closing process means we spend time 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.
5. Disbursement
This is when the money hits your account. Congratulations!
