ShadeFund Loans

ShadeFund: A program of The Conservation Fund

Types of Loans: ShadeFund is a non-profit lender providing loans up to $50,000 to forest related businesses and other green small businesses throughout the US. Most ShadeFund loans are expected be $20,000 or less.

Loan proceeds can be used for equipment, inventory, operations, certification, or other working capital needs.

ShadeFund loans can be structured as subordinated, equity-like capital that allows a business to access traditional sources of capital for projects exceeding $50,000. In addition, ShadeFund loans can serve as matching funds for grants or other sources of funding in order to meet the total cost of a project.

Qualifying: ShadeFund lends to existing small businesses that are involved in the responsible use of forestland and farmland:

sustainable forestry and forest products;
small-scale biomass;
renewable energy and energy efficiency.
sustainable or organic farming;
eco-tourism;
natural food and medicines;

ShadeFund reviews typical information about the business and borrower, including: historical financial performance; projections; last 3 years tax returns (business and individual); and credit report. As a non-regulated lender, ShadeFund has flexibility to consider loans that would not qualify for traditional bank financing.

Applying: ShadeFund’s loan application (available online at http://www.shadefund.org/entrepreneurs/become-an-entrepreneur.htm) includes: financial history, a list of assets owned and leased, and a description of the project at hand, desired loan amount, and a creditor list. Additional information may be requested as needed.

Terms: ShadeFund interest rates vary (currently 4-9%), depending on purpose, size and credit-worthiness. Most loans will have terms of 5 years of less. ShadeFund's origination fee is $200 for loans up to $20,000, then 1% of the loan amount above that.

Contact: For loan inquiries, contact Rick Larson, ShadeFund Director, at (919) 951-0113 or rlarson@conservationfund.org. For more general information about ShadeFund, visit www.shadefund.org or contact Enrique Perez, ShadeFund Web Community Manager, at (919) 951-0118. Also, be sure to also stay connected through Facebook (facebook.com/shadefund) and Twitter (twitter.com/shadefund)

Mike Lipke, owner and CEO of Portland-based Trillium Pacific Millwork