Community Food Co-op



Community Food Co-op Farm Fund Now Accepting Next Step Grant Proposals

The Farm Fund is accepting proposals for Next Step Grants of $1,250 to $5,000, in combination with low interest loans up to $12,000. Loans are secured by the Co-op and offered through the Industrial Credit Union (ICU). The purpose of the Next Step Project is to help qualifying farmers and food businesses successfully overcome the challenges of expansion for wholesale markets. Applications will be accepted Monday, November 19, 2018 - Friday, January 11, 2019.

Donations from Co-op members and The Sustainable Whatcom Fund of The Whatcom Community Foundation make these Next Step grants and loans possible.

Application and Selection Process

The Next Step Project pairs grant funding with loans or other investments to increase the amount, quality, and availability of local food produced and available to serve the Whatcom County wholesale market within 12 to 18 months. Project proposals are evaluated based on the potential to fulfill the goals described in the application below.

Evidence of existing financial investment for the proposed project, or an application for a Farm Fund loan or other new loan must accompany the application. The Next Step grant-to-loan ratio is 1 - 4. A minimum grant amount of $1,250 corresponds to a $5,000 loan. The maximum grant amount is $5,000, corresponding to a loan of $20,000+. ICU may offer interest-only loans for up to one year, depending on available funding. See the Farm Fund Loan Application for loan terms and details.

The Farm Fund Committee, the Co-op General Manager, and the Co-op Finance Manager review the grant and loan applications, and ICU makes lending recommendations to the Co-op. Grant and loan funds are typically available 2 – 4 weeks after decisions are announced, upon confirming loan or investment documents.

If you have any questions, please don’t hesitate to ask what the best fit is for your project. Contact Jean at 360-734-8158, ext. 311 or email jeanr@communityfood.coop. We look forward to your application!

Farm Fund Next Step Grant Application

Deadline: Friday, January 11, 2019

The Farm Fund works to strengthen the market for organic and sustainable agriculture in Whatcom County, encourage ecological and socially responsible farmland stewardship, support resilient, successful farms, and to increase access to healthy food grown, raised or processed by local producers.

Skagit County-based applications must supply Whatcom County as part of their project.

The intention of the Next Step Project is to pair grant funding with loans or other investments to increase the amount, quality, and/or availability of local food produced and available to serve the wholesale market within 12 to 18 months. Applications must be project specific and must be initiated within 12 months of approval. *Farmland related projects have slightly different criteria (see below). Specifically, the goals are to:

• support local farmers in realizing new economies of scale that reduce costs, and increase product quality and availability

• increase local product for the wholesale market, such as groceries, schools, hospitals, food banks, and/or sale via food hub or other distributor

• ensure the success of local farmers who have recently purchased land or are making a significant business expansion

Applicant Organization / Business Name:

Contact Person(s):

Address:

Phone:

Email & website:

Mission Statement:

Please describe your organization or farm, and how your business relates to the Farm Fund:

Project Summary

Tell us your story. Describe how this funding would meet the Next Step Grant goals listed above. Include how you will be increasing the production quality, diversity, volume, sustainability, efficiency, or yield of local food available to wholesale buyers. (one page maximum)

Put an X next to statements that describe the focus of your project for which these funds will be used:

| |Acquire additional farmland or production area. *Flexibility up to a year before or after will be considered for this |

| |category. |

| |Fund costs associated with expanded / diversified production (buying livestock, seeds, starts, etc.). |

| |Develop a farm related service business (traditional distribution, food hub style aggregation and delivery, marketing and |

| |branding, equipment rental, brokerage). |

| |Assist with building improvements to farm infrastructure (design, construction, electrical, plumbing, etc.). |

| |Purchase equipment or fixtures related to infrastructure improvements (walk-ins, shelving, processing, sanitation, other |

| |furniture and fixtures). |

| |Purchase equipment to improve capacity and/or efficiency (trucks, tractors, forklifts, pallet jacks, seeders, harvesters, |

| |etc). |

| |Fund improvements needed for GAP or Organic certification. |

| |Technology improvements (computers, software, technology services, etc.). |

| |Professional training or education. |

| |Other, please describe: |

Put an X next to the Whatcom County wholesale markets you serve now, or will expand into:

| |Community Food Co-op |

| |Farm to School |

| |Food Banks |

| |Other grocers or institutional buyers -- please specify: |

| |Distributors (Puget Sound Food Hub, Charlie’s Produce, etc.) -- please specify |

Please describe any initial steps you have taken to confirm demand for your product and/or to establish these relationships from the outlets you checked above:

Grant to Loan Ratio

The Next Step Grant to loan ratio is 1-to-4, with the minimum grant amount of $1,250 corresponding to a $5,000 loan. A maximum grant amount would be $5,000, corresponding to a $20,000 or greater loan. Terms of the loan are set by the applicant and ICU, with typical Farm Fund Loan interest rates at 3%, depending on loan source. See the Farm Fund Loan Application for loan terms and details.

Applicants have two options to match Next Step Grants with capital investment.

Put an X next to the option you are requesting:

| |Combined Grant and ICU Loan Option: For applicants who wish to have NEW loan and grant applications considered together, or|

| |who have taken an ICU loan within the past 24 months. |

| |Grant Only Option: Available when the applicant has already secured financing for this proposed project from another lender|

| |or in conjunction with personal investment. (See projected funding sources and uses form below.) |

Have you already applied or are you planning to apply for a Farm Fund Loan at ICU?

____ Yes: Date of application: _____________________

____ No: Briefly explain why you are choosing not to take out a Farm Fund loan at this time.

Estimated Funding Sources and Uses for new project

|Sources |Estimated Amount |Uses |Estimated Amount |

|Farm Fund secured loan | |Closing or upfront lease costs | |

|Next Step Grant | |Property purchase | |

|Other loans | |Business start-up costs | |

|Other Grants or gifts | |Construction | |

|Cash | |Equipment and fixtures | |

|In-kind contributions | |Vehicles | |

|Other sources | |Farm equipment | |

| | |Other supplies and costs | |

| | |Technology | |

| | |Startup labor | |

| | |Sales tax | |

| | |Contingency (10% above costs) | |

| Total Sources | |Total Uses | |

Please use the table below to provide information on new income and expenses associated with the project and your existing operation.

Estimated income and expenses—annual

|Income |2017 |2018 |2019 |

| | | |Estimated |

|Sales | | | |

|Rental(s) | | | |

|Other income | | | |

|Next Step Grant | | | |

|Other grants received | | | |

|Loans received | | | |

| Total Income | | | |

|Expenses | | | |

|Cost of Goods Sold (if applicable) | | | |

|Wages and benefits | | | |

|Supplies and other operating expenses | | | |

|Equipment maintenance and repair | | | |

|Utilities, telephone, internet, etc. | | | |

|Farm/produce insurance | | | |

|Professional Services (Lawyer, CPA, etc.) | | | |

|Lease or rent payments | | | |

|Other occupancy costs (insurance, fees, etc.) | | | |

|Interest expenses | | | |

|Other expenses | | | |

|Loan payments (annual) | | | |

| Total Expenses | | | |

|Net profit | | | |

|(Total income less total expenses) | | | |

|Cash Flow |2017 |2018 |2019 |

| | | |Estimated |

|Net profit (from above) | | | |

|Beginning Cash | | | |

|Ending Cash | | | |

|(Beginning cash plus net profit) | | | |

Optional additional financial information (200 word limit):

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