m

How to Work With Us

We work on a collaborative basis with clients to make their businesses more regenerative while increasing revenues, reducing costs, and maximizing profits. Contact us to brief us on your project and to schedule a time for an initial discussion.

Contact Us

Regenerative Business Ventures LLC
412 Huntfield CT NE
Leesburg, VA 20176

(703) 880-5154

info@regenerativebusinessventures.com

Top

Finance

We work with customers to evaluate, propose, document, and close funding for viable projects. All potential projects are evaluated for feasibility before we start the process of submitting the project to our network of investors and lenders.

Our team of staff, strategic partners, and advisers work closely with a large network of lenders, investment banks, international banks, hedge funds, private equity funds, family offices, USDA guaranteed lenders, farm credit lenders, and economic development organizations to finance credit-worthy energy and commodities projects.

 

Financing Options for Regenerative Agriculture Businesses Ranked From Easiest to Hardest

Conventional Mortgage (Fannie, Freddie, FHA, VA)

$550,000 or less

5% to 20% Down Payment. Fast Approvals. Home and buildings must be >50% of the price. Best for mini farms and market gardens. 50 acres or less. 30 year term. Secured by real estate.

Farm Credit System Mortgage

$1.4 million or less

20% minimum down payment. More for raw land. Fast approvals. 20-30 year terms. Secured by real estate.

Equipment Financing

$5,000 to $10+ Million

Multiple structures from lease to own. May require a down payment up to 20%. 3 to 7 year terms. Secured by equipment.

FSA Farm Operating Loans

$300,000 Maximum; $50,000 Maximum for Beginning Farmers

Working capital loans for operating expenses, purchase of livestock, farm reorganization to improve profitability, and equipment. 12 month term for operating expenses. Up to 7 year terms for larger purchases like equipment. greenhouses, or livestock.

Economic Development Incentive Packages

$10,000 to $100,000 per FTE Job Created

Mix of grants, tax abatements, workforce training, low cost access to land and buildings, and low interest loans.

Crowdfunding Through Product Sales

$5,000 to $1+ Million

Examples include Community Supported Agriculture, Kickstarter, Indiegogo, and other crowd funding sites. Most successfully funded projects raise less than $10,000, but a growing number have reached six, seven, and even eight figures. Requires very good marketing, good videos, and an existing network to help promote the campaign. 35% of Kickstarter campaigns are funded.

SBA 7(a) Term Loans

$150,000 to $5 million

Bank SBA Guaranteed Loans for Working capital, real estate acquisition and construction, and/or equipment. Requires equity, business history, revenues, and personal guarantees. Will fund commercial real estate and the processing, distribution, and cold storage side of agriculture but will not fund farming.

USDA Business & Industry Loan

$10 Million Maximum

Must be rural or agriculture. No production agriculture or farming except for nursery, forestry, greenhouse, and aquaculture unless if vertically integrated with processing. 20% minimum equity but 40% is commonly required if not secured by real assets. Major paperwork. 90+ days to close.

USDA Rural Energy for America (REAP) Loan

$25 Million Maximum

Financing for renewable energy and energy efficiency. 30 MW or smaller. No construction funding - takeout funding only. Must be rural or agriculture. 25% equity required. Major paperwork. 90+ days to get approval. Close 2-4 weeks after final system commissioning. Often uses a USDA B&I loan for construction financing. 30 year term if it includes real estate. 15 year term for equipment.

Equity Crowd Funding

$1 Million or $5 Million (Accredited Investors Only) Maximum

SEC regulated equity funding. Major paperwork and legal compliance. - $50,000-$100,000 in costs regardless of success.

Venture Capital / Private Equity

From $5 Million to $100+ Million

Requires well developed and documented businesses and strong teams. 6-12+ month process from start to close. Generally requires some equity capital to fund during capital raising process. Most want to see customer, vendor, and key supply contracts or letters of intent. Requires travel - most players in this space tend to be in the major financial market locations - New York, London, Silicon Valley, etc. Funders expect board seats and restrictive covenants.

Capital Markets

$50+ Million

Capital for project finance, expansion, mergers and acquisitions, and public offerings from Tier 1 ``White Shoe`` firms. Expensive to raise - $1+ million in transaction costs. Companies must be well developed with customers, revenues, and assets. Within agriculture, most commonly used for large commercial greenhouse projects, utility scale energy infrastructure, large processing facilities, large coops, and mid-market vertically integrated agribusinesses.

What Elements and Documentation Do I Need to Successfully Close Financing?

Here is a list of thirteen major elements you will need in place to successfully close funding:

  1. Investor Presentation
  2. Spreadsheet Cashflow Model including full pro-forma financials
  3. Written Business Plan
  4. Full team lined up with contracts in place along with clear definitions of compensation, equity, and who will do what
  5. Written agreements for all land leases, real estate contracts, and any commercial real estate
  6. Detailed implementation plan – KMZ file for google earth layers with a budget (integrated into cashflow model) that sequences everything
  7. Statement of sources and uses of funding, including all major material line items over ~$10,000 to $25,000
  8. Capital structure – equity and debt
  9. Documentation of Customers or Customer Letters of Intent
  10. Legal entity formed – typically either a Subchapter S corporation or Limited Liability Corporation with operating agreement in place
  11. EIN Number for entity + bank account
  12. Website and email addresses for all team members – should be exchange server based email
  13. Documentation of major milestones and metrics for success

Larger projects, including all projects with venture funding, capital markets funding, and/or >10 FTE employees, also need four additional items in place:

  1. Advisory Board in place
  2. Board of Directors in place (except for 1 or 2 open slots for equity investors); should be 3, 5 , or 7 members post close
  3. Legal counsel in place.
  4. Economic development incentive package from the local jurisdiction where you are creating jobs

In addition, having some seed funding to help cover expenses, travel, and legal costs would help a lot – particularly for projects requiring more than $1 million in capital.

We can help you navigate this process and develop the documentation you need to secure funding. For smaller projects, this process is more about making the right financial decisions than doing regulatory compliance with securities laws. Obviously, as your projects get bigger, more complicated, and require more funding, your documentation requirements increase substantially.