shadefund, the conservation fund

GREEN BUSINESS LENDING

SHADEFUND | www.shadefund.org

ShadeFund, The Conservation FundA Non-Profit Capital Source for Natural Resource Based Businesses

Presenters: Rick Larson and Enrique Perez



Our approach to

Conservation• The Conservation Fund is a

national nonprofit with a dual charter of environmental protection and economic development.

• Core idea: For conservation to have lasting effects, it must make economic sense.

• We’ve protected over 7 million acres of environmentally sensitive land since 1986.

• Rated as one of the nation’s top-ranked charities by Charity Navigator.

• We also finance farms and businesses that are good stewards of America's farmland, forestland, and other natural resources.



In addition to land conservation, The Conservation Fund also provides financing to good stewards of America's natural resources through Natural Capital Investment Fund (Southeast-based CDFI) (established 2001) and ShadeFund.

•Loans up to $50,000 to small green businesses. •Interest rates (currently 4% to 9%) depending on collateral, past business performance, and credit worthiness.

•Eight loans to date: CT; ME; MI (2); MN; NC; NY; OR. Average size: $14,700. Uses: equipment; purchase order financing; farm operations; working capital. To date: 50% to farms, 50% to forest products.

•To apply, visit shadefund.org/apply. Information required: completed application; 3 years of tax returns; and current financial statements. Decisions in 30 to 45 days.

ShadeFund was established in 2011 with a lead grant from the U.S. Endowment for Forestry and Communities. Our inaugural corporate sponsor is Mercedes-Benz USA.



Entrepreneurs:

Adrienne Lee and Ken Lamson New Beat Farm, Knox ME

• Beginning organic fruit and vegetable growers.

• Approved for an NRCS cost share to build a greenhouse, which would help the farm expand its growing season.

• But, lacked upfront capital to complete the project.

• $4,000 ShadeFund low interest loan enabled the farming duo to complete the construction of their greenhouse in the time required for reimbursement from NRCS.



Entrepreneur: Mike Lipke

Trillium Pacific MillworkWilsonville, OR• Mike was expanding his FSC-

certified wood mill by purchasing a $70,000 CNC router. The router would allow the company to produce more precisely cut orders in-house.

• Trillium had a commitment letter from Portland-based community bank KeyBank for $50,000…but didn’t have the cash for its “equity” portion.

• ShadeFund’s $20,000 loan allowed the company to complete the financing at a much more affordable rate than those offered by traditional banks.



Leveraging Opportunities

• Wherever possible, ShadeFund uses its loans to leverage other sources of capital to meet a business’ total funding need.

• At times, we provide subordinated or equity-like capital so banks and other financial institutions can say “yes” to a loan, even when collateral or equity is not quite sufficient.

• For more information on co-lending and other leveraging opportunities, contact Rick Larson at (919) 951-0113 or [email protected].



Become a ShadeFund

Field Partner

• We value our Field Partners. They are essential in connecting us with promising green entrepreneurs who would benefit from a ShadeFund loan.

• You don’t need to be experts on business finance or natural resource management — just a desire to help spread the word!

• In some cases, our Field Partners may serve as a reference or provide technical assistance.

• To become a Field Partner, contact Enrique Perez at (919) 951-0118 or [email protected].



Loan Inquiry? General Questions?

Rick LarsonShadeFund Director,[email protected](919) 951-0113

Enrique PerezWeb Community Manager,[email protected] (919) 951-0113

Contact us!

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shadefund, the conservation fund

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