ShadeFund Loans

ShadeFund is a non-profit lender providing loans to forest related businesses and other green small businesses throughout the US. ShadeFund is now a Conservation Fund program through the Natural Capital Investment Fund. 

Types of Loans

ShadeFund provides loans up to $50,000 but 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.

Terms & Applying

ShadeFund’s loan application 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.

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. For more general information about ShadeFund, visit the Natural Capital Investment Fund page from the Conservation Fund.