MSU CENTER FOR REGIONAL FOOD SYSTEMS NEW FUNDING …

MSU CENTER FOR REGIONAL FOOD SYSTEMS

NEW FUNDING SOURCES FOR FOOD-RELATED BUSINESSES

THIRD EDITION

APRIL 2017

NEW FUNDING SOURCES FOR FOOD-RELATED BUSINESSES

TABLE OF CONTENTS

SECTION 1: INTRODUCTION

5

Before You Begin, Do You Have a Business Plan? . . . . . .6 What Type of Financing Do You Need? . . . . . . . . . . . . 7

SECTION 2: CROWDFUNDING

8

Barnraiser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 CircleUp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Credibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Crowdfunder . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 CrowdMole . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 EquityEats . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Foodie Crowd Funding . . . . . . . . . . . . . . . . . . . . . 13

Foodstart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 FundRazr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Indiegogo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Kickstarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Lendio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Localstake . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Patronicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

SECTION 3: START-UP ACCELERATOR RESOURCES

19

AccelFoods . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Food Hatch . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

food-x . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

SECTION 4: MISCELLANEOUS RESOURCES

21

Ben and Jerry's Foundation, Grassroots Organizing for Social Change Program . . . . . . . . . . . . . . . . . . 21 Farm Aid Grant Program . . . . . . . . . . . . . . . . . . . 22 Greenstone Farm Credit Services . . . . . . . . . . . . . . 23 Kiva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Lending Club . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Metro Community Development (Flint Area) . . . . . . . 26 Michigan Good Food Fund . . . . . . . . . . . . . . . . . . 27 Natural Capital Investment Fund . . . . . . . . . . . . . . . 28 Northern Initiatives . . . . . . . . . . . . . . . . . . . . . . . 29

Northwest Michigan Farm and Food 20/20 Fund . . . . . 30 Opportunity Resource Fund (OppFund) . . . . . . . . . . 31 Patagonia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Prosper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Robert Wood Johnson Foundation, Culture of Health Prize . . . . . . . . . . . . . . . . . . . . . 34 RSF Social Finance . . . . . . . . . . . . . . . . . . . . . . . 35 SPARK (Ann Arbor) . . . . . . . . . . . . . . . . . . . . . . 36 Whole Foods Market, Local Producer Loan Program . . . 37 Women's Foundation (Michigan) . . . . . . . . . . . . . . 38

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TABLE OF CONTENTS (continued)

SECTION 5: ADDITIONAL SOURCES OF FUNDING INFORMATION

39

Michigan Small Business Development Cetner, Business Accelerator Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 State of Michigan, Department of Agriculture and Rural Development

Rural Development Fund Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Specialty Crop Block Grant Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Value-Added Grant Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 USDA, Agricultural Marketing Service Farmers Market Promotion Program (FMPP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Local Food Promotion Program (LFPP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 USDA, Farm Service Agency Farm Storage Facility Loan Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 USDA, Food and Nutrition Service Farm to School Grant Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 USDA, National Institute of Food and Agriculture Agriculture and Food Research Initiative (AFRI): Agricultrual Economics and Rural Communities . . . . . . . . . . . . 48 Agriculture and Food Research Initiative (AFRI): Improved Sustainable Food Systems . . . . . . . . . . . . . . . . . . . 49 Beginning Farmer and Rancher Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Community Food Projects Competitive Grants Program (CFPCGP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Small Business Innovation Research (SBIR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Sustainable Agriculture Research and Education (SARE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 USDA, Rural Development Business and Industry Guaranteed Loan Progam (B&I) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Community Facilities Grant and Loan Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Rural Business Development Grant (RBDG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Rural Cooperative Development Grant (RCDG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Rural Economic Development Loan and Grant (REDLG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Rural Energy for America Program: Renewable Energy System and Energy Efficiency Improvement Guaranteed Loan and Grant Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Socially Disadvantaged Groups Grant (SDGG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Value-Added Producer Grants (VAPG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

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Authors

Anel Guel, Graduate Student, Department of Community Sustainability, MIchigan State University (1st edition)

Rich Pirog, Director, Center for Regional Food Systems, MIchigan State University (all editions)

Rachel Kelly, Research Assistant, Center for Regional Food Systems, MIchigan State University (3rd edition)

Nick McCann, Specialist, Center for Regional Foods Systems, MIchigan State University (3rd edition)

Taylor Wimberg, Graduate Student, Department of Community Sustainability, MIchigan State University (2nd edition)

Emily Kim, Undergraduate Student, Department of Community Sustainability, MIchigan State University (1st edition)

Abby Harper, Specialist, Center for Regional Food Systems MIchigan State University (1st edition)

Corresponding Authors

Rich Pirog, Director, Center for Regional Food Systems, MIchigan State University (all editions)

Nick McCann, Specialist, Center for Regional Foods Systems, MIchigan State University (3rd edition)

Acknowledgements

The authors wish to thank Susan Cocciarelli and Kathryn Colasanti with the Michigan State University (MSU) Center for Regional Food Systems (CRFS) for their review of the 1st edition of this document. Marty Gerencer of Morse Marketing Connections, LLC also provided comments on specific sections of the 1st edition, and Kathleen Reed, MSU Department of Community Sustainability graduate student helped with the 2nd edition. We also wish to thank Andrea Sexton, and Liz Gensler at CRFS, Kelsey Grimshaw at CRFS for her suggestions with layout and design on the 2nd edition, Amy Bond-Nelson Moore of Bond Creative for layout and design of this 3rd edtion, and Robin Miner-Swartz for copy editing of the 3rd edition. Support for this work comes from the W.K. Kellogg Foundation and the Kresge Foundation.

Photo Credits

Page 5: Farm with rainbow near MSU Student Organic Farm--MSU Center for Regional Food Systems

Page 7: A woman packaging bags at Kansas City CSA Distribution--MSU Center for Regional Food Systems

Suggested Citation

Guel, A., Pirog, R., Kelly, R., McCann, N., Wimberg, T., Kim, E. & Harper, A. (2017). Funding sources for food-related businesses: Third edition. East Lansing, MI: MSU Center for Regional Food Systems. Retrieved from foodsystems.msu.edu/ resources/food_business_funding_sources

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NEW FUNDING SOURCES FOR FOOD-RELATED BUSINESSES

SECTION 1: INTRODUCTION

Purpose of This Directory

This directory provides an overview of various sources of financing that may be available to food hubs and other food-related businesses. This directory is a partial listing of what may be available across the United States; some examples may not be a good match with your particular circumstances. The format for this directory was initially informed by a listing of funding resources for food-related businesses found on the Food+Tech Connect website, a media and research company building a network for food innovators and entrepreneurs (). Many of the funding sources listed in this directory are available for local foodrelated businesses across the United States, but several additional funding websites are specifically for Michigan. All the information for each funding entity has been researched through its own website.

How the Directory Works

The directory is divided into several category sources: crowd funding, accelerator, miscellaneous (non-Federal), and additional Federal resources. Each entity listed under these four categories will have the title of an entity, a URL of its website, a description of how it works, funding focus, funding limit, qualifications, and the entity's financial geographic area.

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