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Tagged: “Best Podcasts of 2018”

How A Bank Can Strengthen Farming Communities Through Innovative Lending

How A Bank Can Strengthen Farming Communities Through Innovative Lending

Ephrata National Bank in Lancaster County, Pennsylvania is a $1 billion community bank with 25% of their portfolio funding agricultural entrepreneurs. The bank’s staff have found that changing the price the farmers receive via new business models or premium offerings through things like organic production or value-added processing helps farmers deal with high land prices and avoid commodity agriculture’s low return on assets. Lending is a “high-contact sport” and relationships with lenders can help food businesses solve key business problems. Partnerships with government programs from the FSA, SBA and USDA that encourage food and farm lending are essential to make many of these lending relationships work. But, there is a lack of technical assistance nationally to help more lenders understand (and underwrite) cross-disciplinary business models (ex. a farming operation with a cheese plant that resembles food manufacturing). There is also a lack of training on how entrepreneurs and lenders can leverage all of the different sources of capital and programs available to entrepreneurs to make more deals happen.

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How Tribe 9 Foods Balances Economies Of Scale With A Changing Marketplace

How Tribe 9 Foods Balances Economies Of Scale With A Changing Marketplace

Tribe 9 Foods is the result of merging Yumbutter, RP’s Pasta and Ona Treats. The new company also secured growth capital to bring manufacturing in-house for all three brands, something that has allowed them to have control over batch timing, batch size and product quality. In addition, in-house production allows them the flexibility to try new things and have a co-packing line of business for their core product types (nut butters, pasta, bars). Yumbutter’s team brings experience in branding/marketing and RP’s team brings experience in innovative food manufacturing and food safety protocols, allowing them to combine flexibility with economies of scale while serving multiple types of customers with their co-packing service. Tribe 9 is always looking to be flexible and nimble, diversifying as the market changes and as everyone tries to figure out a more sustainable way to produce and distribute high quality food.

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How Union Kitchen’s Ecosystem Helps Build Profitable Food Businesses

How Union Kitchen’s Ecosystem Helps Build Profitable Food Businesses

Union Kitchen is a shared-use kitchen and food business accelerator in in Washington D.C. While having a shared-use kitchen eliminates the need for capital for kitchen equipment, there are many other things food businesses need to raise capital for, which why they have distribution and retail outlets as part of their model. Their vertically integrated business and infrastructure – the kitchen, distribution and retail outlets – pairs with its accelerator program, which includes technical assistance, mentorship, classes and other means to help its members be successful. They have worked with over 400 businesses that have hired over 1,000 people and of those 400, 80 have opened their own storefronts. The financial community is more willing to provide capital to their member businesses because their ecosystem has allowed their members to prove that their products have traction in the marketplace and their operations are solid.

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MobCraft Beer’s Creative Sourcing of Recipes and Financing

MobCraft Beer’s Creative Sourcing of Recipes and Financing

MobCraft beer is a brewery and taproom with a unique business model of crowdsourcing ideas for beer recipes from their customers. Their brewery/taproom in Milwaukee cost just over $2 million to build. When MobCraft first started to raise money to finance their facility, they looked for institutional capital at first without much success and then pursued equity crowdfunding. Knowing how much equity they needed vs. debt to finance their facility build out and equipment needs helped them pitch specific asks to both banks and investors. They took advantage of the SBA 7a program to raise the debt they needed, talking to multiple banks before securing bank financing. They also worked with the landlord of their facility to help finance the improvements to the space, which worked as equity when approaching the bank. They then strategically sold their distribution rights to help raise cash.

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