Cultivator Loan Program
Harve$t Impact Cultivator Loan is a program offering $10,000 in financing at 0% interest to approximately 34 Guelph-Wellington food system businesses (including not-for-profits and social enterprises) in support of their recovery from current economic shocks, and to help them shift their practices in a way that contributes to a more sustainable, equitable and healthy food economy.
Introduction
Harve$t Impact is a social financing project of 10C and a core pillar of the Our Food Future initiative. The COVID-19 pandemic has put a magnifying glass on many of the existing challenges that Our Food Future initiative aims to resolve. To provide immediate support and propel long-term community resiliency, Harve$t Impact and our partners are launching a loan program to help existing and new businesses overcome the impact of the current crisis through, and enhance capital and capacity to emerge from the current crisis stronger and more sustainable.
Harve$t Impact Cultivator Loan Program is a collaboration with Wellington-Waterloo Community Futures (WWCF) and Saugeen Economic Development Corporation (SEDC). It is a part of Grow Back Better, Our Food Future’s 10-point recovery plan in response to COVID-19, and supports the City of Guelph’s overall economic and social recovery efforts.
We are reprioritizing and restructuring existing elements of Our Food Future to provide immediate support to strengthen our local food economy. For more information about Grow Back Better, visit foodfuture.ca/growbackbetter.
What This Loan Program Offers
Harve$t Impact Cultivator Loan Program will offer the following to approximately 34 pre-selected businesses (including not-for-profits and social enterprises who have completed the seeding Our Food Future grant Program):
- A maximum business loan of up to $10,000, administered directly by WWCF/SEDC.
- Support for impact measurement by a dedicated staff of Harve$t Impact as well as a network of professionals from Our Food Future Initiative. Let us help build your impact measurement data and stories.
Program Eligibility
& Requirements:
Loan Terms:
- Applicants must be a recipient of a Seeding Our Food Future (SOFF) grant program to apply for this loan program.
- Applicants register as a 10C Harve$t Impact client and Our Food Future participant by completing the online registration with Harve$t Impact in full.
- Applicants agree to work with Harve$t Impact and our partners including iHub on identifying, achieving and reporting on your impact goals.
- Applicants complete a survey at the end of the program period to report on the impact of the loan and support received through the program.
- WWCF and SEDC provide financing and administration of the loan. They require a personal guarantee of debt repayment as security.
- All loan applicants must complete the required SOFF milestone 2 (see Section 4) prior to loan approval and loan funds being disbursed.
- Loans are primarily for cash flow and working capital
- 0% annual interest rate for the entire 3 years of the amortization period.
- Loan repayment is amortized over three years with flexible repayment terms and no prepayment penalties.
Application Process and Timeline
Step 1: CFE IHUB Paperwork & Mentor Selection
Complete iHub paperwork and mentor selection
The loan applicants with their business projects originating through Seeding Our Food Future Grant Program (SOFF) will need to complete the iHUB first payment milestone by completing necessary paperwork and have a lead mentor assigned.
Step 2: Harve$T Impact Registration By January 31, 2020
Complete your online registration with Harve$t Impact
- To register as a pre-selected loan applicant of Harve$t Impact Cultivator (HICL), applicants must be a recipient of Seeding Our Food Future grant program.
- The Harve$t Impact Cultivator Loan registration form will request information about the desired social, economic and/or environmental changes of your existing business or proposed business.
- Agree to work with Harve$t Impact to measure and reflect on the circular impacts of your project.
- After receiving your online registration and agreement to our program requirements, Harve$t Impact will share your initial SOFF grant application details with WWCF/ SEDC.
Step 3: Loan Application
Submit your loan application form and required documents directly to WWCF or SEDC
Step 4: Milestone
Harvest Impact Cultivator loan funds will only be approved by WWCF and SEDC once applicants have achieved the SOFF Milestone 2, demonstrating that work on your project is well underway. You have reached SOFF Milestone 2 by:
- Finishing 15 hours out of 30 hours of mentorship/coaching.
- Your project’s planned activities are 50% complete as assessed by the Lead Mentor and approved by the iHub Program Manager.
- CFE iHub awards the remaining 50 per cent ($2,500) of the grant.
- A prerequisite for any loan approval and loan funds being disbursed.
Step 5: Loan Review And Approval
Letter of Offer
- A Letter of Offer will be issued by WWCF or SEDC to successful loan applicants for review and signature.
- When a loan application is officially approved by WWCF/SEDC, a Letter of Offer will be prepared and sent to the loan recipients for review and signature.
- Return your signed Letter of Offer together with required documents directly to the staff of WWCF or SEDC.
- Additional documentation may be required by WWCF/SEDC, including:
- Most current financial statements
- Cash flow projection indication (what will the loan be used for)
- A copy of the Master Business Licence or Incorporation papers
- Signed Promissory Note
- Signed Letter of Guarantee
- Signed General Security Agreement
Selection Guidelines
Please note that even if your proposed business meets all the criteria of Seeding Our Food Future Grant Program, the submission of a loan application creates no obligation on the part of this loan program to provide funding for the proposed business. All final decisions are made based on the strength of your business idea illustrating a well-thought out rationale and clear impact, your ability to effectively deliver on planned outcomes, ability to repay, impact on job creation or maintenance, and the impact on sustainable growth for the community.
What Happens Once
a Loan is Approved?
Additional Requirements
Applicants will be notified as final loan decisions are reached. Successful applicants (“Recipients”) can expect the following:
- Loans are administered by the financiers, WWCF or SEDC.
- Reporting requirement:
- WWCF or SEDC will follow up with the recipients quarterly for the first year following the opening/investment in the business.
- All recipients must provide WWCF or SEDC with financial documents on a quarterly basis
- # Jobs created or # Jobs maintained
- Recipients to report number
As a condition of receiving Harve$t Impact Cultivator Loan and support, recipients agree to:
- Allow the use of their name, photograph, and video content (as applicable) in program-related communications.
- Accept the Our Food Future Privacy Policy and Data Sharing Policy.
- Acknowledge Harve$t Impact, CFE iHuB, Our Food Future and the relevant financiers’/contributors in any public announcements or other communications about the program.