RSF Social Finance Makes a Loan to Eastern Carolina Organics
SAN FRANCISCO, September 30, 2014 /3BL Media/ - RSF Social Finance (RSF) is pleased to announce a new loan to Eastern Carolina Organics (ECO), a farmer and employee-owned food hub distributing fresh, seasonal, organic produce to retailers, institutions, distributors, and restaurants across North Carolina. RSF provided a line of credit through its PRI Fund that will be used to help bridge cash flows between timing of payments to farmers and sales receipts from customers.
ECO started in 2004 as a project of the Carolina Farm Stewardship Association (CFSA) and as a recipient of a $48,000 Tobacco Trust Fund Commission grant. The goal of CFSA was to support emerging organic produce and tobacco farmers while improving the supply of local organic food. In 2005, ECO became a private, grower-and-manager-owned LLC with 13 growers and 2 staff.
Today, ECO works with over 60 growers and 100 wholesale, retail, and institutional customers to provide an efficient and sustainable route to market for organic produce. Several of ECO’s initial farm-owners started farming under five acres of land and have grown to over 200 acres as a result of ECO opening the market, paying good prices, and providing technical assistance for organic certification. Farms with histories in conventional farming but aspirations of transitioning to organic also have a place within ECO, during and after the transition.
“It’s important to us that our business partners are mission-driven like we are and align with our core values and vision for building a sustainable food system,” says Sandi Kronick, CEO of ECO. “We’re grateful for the opportunity to partner with RSF, a leader in lending with a commitment to understanding our needs and unique business model. For example, by granting us flexible winter terms they acknowledge the unique challenges of our seasonal produce business which allows us to continue operations even when the fields are under a blanket of snow.”
Since ECO’s founding, Sandi has been a leader in the sustainable food movement in North Carolina. By recognizing the need for viable production and distribution networks between organic farmers and their existing and potential customers, Sandi and the ECO team have forged new pathways to success for organic food systems.
The purpose of RSF’s PRI Fund is to support the advancement of a more just and sustainable food system. Food hubs are seen as central and catalytic to developing this system.
“ECO has an incredible reputation for its integrity and service to small farmers and are arguably one of the strongest food hubs on our radar,” says Kate Danaher, RSF Senior Lending Associate. “Food hubs like ECO have the ability to connect producers with growing market demand, which holds incredible promise for positive impact on the local economy, social equity, and the environment.”
About RSF Social Finance
Located in San Francisco, CA, RSF Social Finance (RSF) is a financial services organization dedicated to transforming the way the world works with money. Since 1984, the organization has made over $275 million in loans and $100 million in grants to non-profit and for-profit social enterprises working in the areas of Food & Agriculture, Education & the Arts, and Ecological Stewardship. RSF's lending capital comes primarily from 1,500 individuals who have invested $1,000 or more in the organization's Social Investment Fund. Investors earn a competitive return on their money comparable to a certificate of deposit while their funds are deployed to leading social enterprises. To learn more, visit www.rsfsocialfinance.org
About Eastern Carolina Organics
Started in 2004 as a project of the Carolina Farm Stewardship Association, Eastern Carolina Organics (ECO) is a private, farmer/worker-owned for-profit company with a mission to support established and emerging organic farmers while improving the supply of local organic produce. ECO is a “Food Hub” that markets and distributes wholesale Carolina organic farm produce to retailers, restaurants and buying clubs. They currently work with over 60 growers and 100 customers throughout the state of North Carolina. www.easterncarolinaorganics.com
Contact
Kate Danaher, Senior Lending Associate
kate.danaher@rsfsocialfinance.org
415.561.6181
Megan Mendenhall, Communications Assistant
megan.mendenhall@rsfsocialfinance.org
415.561.6161
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