We held an online session to share information about applying to our zero-interest microloan program and to hear perspectives on applying and completing food and farm microloan projects from past program recipients.
View the full session here, or read some specific Q&A points below. Visit our microloan page for full details and also to apply (applications are open November - February).
Timestamps for video navigation
2:20 - Partners Grain Train and Oryana explain purpose of the microloan program
9:50 - Microloan application details
16:50 - Nick Paxton of Joli Cochon Farm (pork producer) shares microloan story
21:59 - Elana Warsen of Michigan Worm Works (vemicompost producer) shares microloan story and budgeting tips
32:32 - Patrick and Libby Ives of Bliss Valley Farm (vegetable and egg producer) share microloan story
40:23 - Live Questions, summarized below with additional frequently asked questions.
Questions and Answers
Q: What is the purpose of this microloan?
A: This zero-interest loan is offered to enhance existing local food and farming ventures or to help start new ones in Northwest Lower Michigan. The ideal candidates will propose an idea that boosts a farm or food business and elevates the region’s local food system. Applicants using sustainable practices are strongly encouraged, but proposals are not limited to particular practices or scale.
Q: When is the microloan available?
A: This microloan is available annually (since 2016). Applications open late fall (November) and close early February.
Q: Where can applicant businesses be located?
A: Food and farm businesses who are eligible to apply for this zero-interest loan are located in the following Michigan counties: Antrim, Benzie, Charlevoix, Cheboygan, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, Otsego, and Wexford.
Q: How much budget detail should I share in my applications?
A: Consider sharing enough information to show the full picture of your microloan project costs as well as some connection between your microloan project and your broader business financial success. You are welcome to share about your business cost and revenue projections beyond just the aspect pertaining to your microloan project - this doesn’t mean sharing your whole business balance sheet. It is highly recommended that you share business projections for the full time frame when you expect to be repaying your microloan (typical loan terms are 12 - 18 months).
Q: Do you consider applications from startup businesses that aren't in business yet?
A: The answer is YES, absolutely. However, applicants who do not have prior business history should aim to provide as much supporting evidence and as thorough a business plan and budget as possible. Please keep in mind that that while many business startup costs are eligible, recurring costs as annual inputs (seed, feed, fertilizer, retail packaging, etc.) should not be in your microloan application. We recommend you consider other ways to cover those costs and to ensure as best as you can that they are accounted for in your business balance sheet from day one. Consider this microloan a resource to help you purchase an essential piece of equipment or make other types of lasting investments in your capacity, brand, and operations.