The Carrot Project Farm and Food Loan Fund

The Carrot Project’s loan programs are available for businesses in Massachusetts, Rhode Island, and Connecticut.

Capital or operating loans of $5,000-$250,000 are available to farm, forestry and fishery businesses, and to processing, distribution and storage enterprises that use any type of local agricultural product.

Loans are available for businesses that may not be able to obtain financing elsewhere, including startups and farms in the first few years of operation. Those who already have a business plan are ideally suited to apply. We offer guidance on when and how to apply for financing, as well as assistance with loan applications, and connection to lenders that lend up to $250,000.

Eligible Borrowers

**Farms: **

• Annual gross annual revenues of $499,999 or less.

• Applicants must be engaged in cultivation of farm, forest or aquatic products or adding value to such products.

• Farm property must be owned or leased by the applicant(s); leases should be in effect for at least the repayment period of the loan.

**Food Enterprises: **

• Must be involved in processing, storage or distribution of agricultural products. Businesses whose primary purpose is to process, add value to, store, or act as distributors for local agricultural products are eligible. For example: agricultural co-ops, co-packers, food hubs, produce delivery companies, cheese makers, butcher shops and farm stands are eligible when distributing or adding value to local products.

• The sources of the ingredients or materials from which the product is produced are primarily within Massachusetts and/or nearby states, although the points of sale need not be within this region.

• The business must have less than 50 employees.

• Agricultural industry support services such as veterinarians, feed & fertilizer stores, general retail outlets, or any business whose product is not primarily local & agricultural are not eligible.

Loan Terms for MA

• Loans from $5,000 to $250,000 available

• The interest rate is approximately 6-7% (subject to change)

• Flexible loan terms from 1-7 years. There is no penalty for early payment.

• Funds may be used for operating or capital expenses. If a loan is used for fixed assets, inventory or receivables, the purchased items will be used as collateral to secure the loan.

Loan Terms for RI and CT

• Loans of up to $250,000 are available.

• The interest rate is approximately 6-7% (subject to change)

• Flexible loan terms from 1-7 years. There is no penalty for early payment.

• Funds may be used for operating or capital expenses. If a loan is used for fixed assets, inventory or receivables, the purchased items will be used as collateral to secure the loan.

To apply, potential applicants must first fill out the Loan Inquiry Form.

The application deadline is always the first of the month or the next business day if the first is a weekend or holiday.

• Borrower’s Financial Glossary (Download .pdf)

• Yearly Financial Statements Template (Download .xlsx) 

• Monthly Financial Statements Template (Download .xlsx) 

• Sample Business Plan and Financial Statements (Download .pdf)