Funding
Grants + Loans
Urban farming is recently experiencing a wave of growth and popularity, creating new avenues of available capital, backed by traditional lenders and as well as venture funds with a philanthropic mission. The framework created to form the vision,mission, goals and programming for the Ghettostead will show to prospective lenders and grant providers how your organization specifically fits in with their funding requirements.
As the Ghettostead evolves and grows, depending on whether or not there will be a commercial or monetized aspect of the project, applying for microloans that are targeted to small food vendors will be useful. These microloans are specifically tailored to help small food ventures to operating expenses, purchase equipment and other infrastructural expenditures.
Once the Ghettostead has been established, shown a consistent operation, predictable revenue and entrepreneurial expertise has been vetted, it will be time to expand and request greater funds. Somewhere two to five years down the road, the microloans can be paid off with a more traditional small business loan. For these, there is the Grow America Fund, which has a lower interest rate and longer term based on the good faith the project has shown in being a stable venture.
The following Resource list will be a great starting point to find possible funding sources whether it be a grant or a loan. Keep in mind when you are applying for funding to apply to funders who align with your goals and objectives. Also, seriously consider what funding option is best.receiving a loan to be paid back has much different implications for your organization than receiving a grant.
As the Ghettostead evolves and grows, depending on whether or not there will be a commercial or monetized aspect of the project, applying for microloans that are targeted to small food vendors will be useful. These microloans are specifically tailored to help small food ventures to operating expenses, purchase equipment and other infrastructural expenditures.
Once the Ghettostead has been established, shown a consistent operation, predictable revenue and entrepreneurial expertise has been vetted, it will be time to expand and request greater funds. Somewhere two to five years down the road, the microloans can be paid off with a more traditional small business loan. For these, there is the Grow America Fund, which has a lower interest rate and longer term based on the good faith the project has shown in being a stable venture.
The following Resource list will be a great starting point to find possible funding sources whether it be a grant or a loan. Keep in mind when you are applying for funding to apply to funders who align with your goals and objectives. Also, seriously consider what funding option is best.receiving a loan to be paid back has much different implications for your organization than receiving a grant.
Funding Resources - Start Up
KIVA
Provides a worldwide platform for entrepreneurs to present their venture and solicit small one-time loans from individuals. These websites allow for cultivating an immediate stream of capital, as their requirements for a business plan are less stringent.
Green for Greens: Finding Public Funding for Healthy Food Retail
ChangeLab Solutions and National Policy Legal Analysis Network
This comprehensive toolkit provides multiple funding options and opportunities on a local, state and federal level for businesses and non-profit organizations seeking to provide healthful foods in underserved areas. The toolkit also dedicates a section to economic development and how to approach economic development agencies. Note that the toolkit was published in 2011 and is not a living document, so some of the opportunities may be outdated or unavailable.
The California Endowment
The California Endowment has two funding streams: the first is a loan program for funding projects that align itself with the Endowment’s 10-year Building Healthy Communities Plan; the second program,the Innovative Ideas Challenge, provides grants for innovative ideas to combat prevalent health issues in underserved communities.
Healthy Food Access Portal
This federal-level resource site provides various funding issues for ventures whose mission is to work in low-income communities in both urban and rural areas. The website is regularly updated with new funding opportunities.
Opportunity Fund
Los Angeles Office:
6606 Pacific Boulevard Suite 214
Huntington Park,CA 90255
408-297-0204
Opportunity Fund is a California-based non-profit organization that provides microloans for small businesses, microsavings and community real estate financing. Opportunity Fund provides three tiers of business loans which can vary in value from $2,600- $100,000. These loans are the EasyPay Loans, Small Business Loans and Equipment and Vehicles.
Community Financial Resource Center
4060 South Figueroa Street
Los Angeles, CA 90037
323-233-1900
The Community Financial Resource Center provides funding for street vendors, small business start-ups and established businesses. Additionally, the center provides business training and support.
Business Resource Group
11075 Santa Monica Boulevard Ste 175
Los Angeles, CA 90025
310-575-3309
The Business Resource Group strives to provide training, financial assistance and technical support to small and disadvantaged business owners in order to ensure business longevity and success.
California Small Business Development Center
562-938-5020
The Development Center has multiple locations in Los Angeles County, providing comprehensive assistance for small businesses including financial assistance and education opportunities.
Provides a worldwide platform for entrepreneurs to present their venture and solicit small one-time loans from individuals. These websites allow for cultivating an immediate stream of capital, as their requirements for a business plan are less stringent.
Green for Greens: Finding Public Funding for Healthy Food Retail
ChangeLab Solutions and National Policy Legal Analysis Network
This comprehensive toolkit provides multiple funding options and opportunities on a local, state and federal level for businesses and non-profit organizations seeking to provide healthful foods in underserved areas. The toolkit also dedicates a section to economic development and how to approach economic development agencies. Note that the toolkit was published in 2011 and is not a living document, so some of the opportunities may be outdated or unavailable.
The California Endowment
The California Endowment has two funding streams: the first is a loan program for funding projects that align itself with the Endowment’s 10-year Building Healthy Communities Plan; the second program,the Innovative Ideas Challenge, provides grants for innovative ideas to combat prevalent health issues in underserved communities.
Healthy Food Access Portal
This federal-level resource site provides various funding issues for ventures whose mission is to work in low-income communities in both urban and rural areas. The website is regularly updated with new funding opportunities.
Opportunity Fund
Los Angeles Office:
6606 Pacific Boulevard Suite 214
Huntington Park,CA 90255
408-297-0204
Opportunity Fund is a California-based non-profit organization that provides microloans for small businesses, microsavings and community real estate financing. Opportunity Fund provides three tiers of business loans which can vary in value from $2,600- $100,000. These loans are the EasyPay Loans, Small Business Loans and Equipment and Vehicles.
Community Financial Resource Center
4060 South Figueroa Street
Los Angeles, CA 90037
323-233-1900
The Community Financial Resource Center provides funding for street vendors, small business start-ups and established businesses. Additionally, the center provides business training and support.
Business Resource Group
11075 Santa Monica Boulevard Ste 175
Los Angeles, CA 90025
310-575-3309
The Business Resource Group strives to provide training, financial assistance and technical support to small and disadvantaged business owners in order to ensure business longevity and success.
California Small Business Development Center
562-938-5020
The Development Center has multiple locations in Los Angeles County, providing comprehensive assistance for small businesses including financial assistance and education opportunities.
Funding Resources - Continuing
Whole Foods Market: Local Producer Loan Program
Provides low interest loans for small businesses, specifically to fund expansion and capital investment ventures. Businesses that have been operating for at least three years can qualify for up to $100,000 while start-ups can receive up to $25,000. Loans are administered through local Whole Foods outlets. Contact your nearest Whole Foods for more information.
Grow America Fund
The Grow America Fund provides loans for businesses that have been in operation for at least three years. GAF sets itself apart by providing loans that start at $150,000 for longer time periods and lower down payments.
California FreshWorks
Provides financing for established businesses to expand their programming in underserved communities.
Provides low interest loans for small businesses, specifically to fund expansion and capital investment ventures. Businesses that have been operating for at least three years can qualify for up to $100,000 while start-ups can receive up to $25,000. Loans are administered through local Whole Foods outlets. Contact your nearest Whole Foods for more information.
Grow America Fund
The Grow America Fund provides loans for businesses that have been in operation for at least three years. GAF sets itself apart by providing loans that start at $150,000 for longer time periods and lower down payments.
California FreshWorks
Provides financing for established businesses to expand their programming in underserved communities.
Make a Profit
Many of the distribution methods outlined in the Distribution section on offer the opportunity to generate a profit from the sale of raw or processed food products. In order to make sales on a regular basis, either the Ghettostead as an umbrella agency, or each individual entrepreneur will need to obtain a business license by registering with the City of Los Angeles.
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Routes to Profit
- Farm stand on property: Create a table and signage to sell to passersby as crops are harvested, much like a garage sale but operated on a more regular basis.
- Farmers’ Market: There is an opportunity to sell products at the Baldwin Hills Mall farmers’ market, which takes place every Saturday.
- Local retailer, in-store stand: Work with a local bodega to negotiate a space to sell produce (although this will likely mean offering a cut of the profit to the retailer). Retailers may be hesitant to buy and maintain the produce themselves, so the Ghettostead’s involvement may encourage retailers to try selling new goods.
- Direct to Restaurant: as outlined in the distribution section (pg. #), selling direct to a restaurant should be based on an agreement prior to harvest. This avoids a scramble to find a buyer and can provide a steady income. Depending on the rarity of the ingredient and whether it is by request, the amount of potential income is highly variable.
- Direct to Consumer (online sales): selling items online, either on Craigslist or Etsy, is preferable for processed and value-added products such as candies or dried fruit. Depending on the marketing and quality of the products, this can be an avenue to make money from growing and processing crops on-site. Note that there is likely much competition for generic products, but novelty or original products could do very well.
- Wholesale/ Produce Distributor: Some produce distributors in the Los Angeles area may be willing to partner with a small grower. This could be a great way to sell the produce without having to spend as much time finding buyers. However, this convenience usually comes at a high price and cuts into possible profit. An example is Small Farm Fresh in Los Angeles.
The success of selling food grown or made at the Ghettostead will rely on more than just matching supply to outlets. The marketing and presentation strategy communicates to the community about the quality and trustworthiness of the products. The La Cocina Guide, whose weblink is in the resources section below, illustrates how to effectively present food goods in order to attract customers and grow sales.
Another early consideration to make if the Ghettostead seeks to earn a profit is to grow strategic plants. For example, with raw goods, some crops are more profitable than others and have the potential to earn money within a limited space (examples include mushrooms, herbs and lavender). If the intended outlet is a farmers’ market, it may be helpful to look at what is currently being offered and try to fill a gap in what other farmers do not offer, such as fruits or root vegetables. Preparing foods can add value to raw goods or can also add value to store-bought ingredients. The California Cottage Food Law, effective January 2013, allows entrepreneurs to make and sell the following food goods:
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