Whole Foods loans to small, local producers
The organic grocery chain lets local producers bypass the red tape of the banks and offers small loans to eco-responsible small food businesses.
It’s difficult for many small businesses to get a loan in our current economy, but small, local producers of natural and organic foods have an ally outside of the banks – Whole Foods. GreenBiz reports that the organic grocer’s Whole Foods Market Local Producer Loan Program has loaned $2.5 million to 40 recipients so far and hopes to loan up to $10 million total."Our local producers is part of what customers say they value a lot; and they are very valuable to us, too."While the terms of the loan are negotiated with the companies individually, the interest rates vary from five to nine percent; an average interest rate is approximately 6 percent, Brown said. And unlike traditional loans, there are no closing fees, no fees for repaying the loan early, and no application fees, she said. The maximum loan amount is $100,000, but Brown said there is no minimum amount. In addition, even though the terms of the loan agreement vary based on the amount and the individual, in general the maximum repayment time is 10 years or less, Brown said."We don’t require any purchasing amounts from our local producers that receive the loans," Brown continued, nor does the company require exclusivity to supply products to Whole Foods Markets. A total of 40 recipients have received these low-interest loans, which in many cases, have helped small producers expand to regional markets.
- An organic ice cream maker
- A glutten-free, vegan snack maker
- A Florida bee-keeper
- A pasta sauce maker
- Grass-fed beef ranchers
link:
| Previous Post Top 10 ways to use up tortilla chip crumbs | Next Post Get ready to eat down the fridge (again) |
Comments
Non-depository mortgage banks had some good news: the FDIC notified personnel that Colonial's warehouse relationships would continue under BB&T, at least in the short term. Many of Colonial's assets were purchased by BB&T, including the warehouse facility which appears to be operating "business as usual" and funding loans. There is some nervousness, however, given the investigation into TBW and the Colonial warehouse unit, but it is rumored that BB&T has assured lenders that they.... More
It seems that there isn’t ever any good news, at least during this recession. Traditional banks are at times seen as large financial institutions populated by stuffy accountants that only smile when they see money and poor people suffer. Traditional banks have gotten their turn, as the recession hit and all their capital disappeared. A lot of people saw their savings investment plan tossed into the wind, and many an investor quaked and shook as they saw their funding and opportunities.... More
