What happens when a project successfully meets its fundraising target?
When a project raises 100% of its target funds, or it reaches its funding deadline, it will be closed from additional lending. Interested lenders who missed out will be able to join a waiting list for that farm and will be notified of the next time they fundraise on the Steward platform.
Loan agreements will be updated with the final loan amount and closing date. The closing date is when interest will start accruing.
Loan Participation Agreement
The lenders will be emailed confirmation of their stewardship including their signed copy of the loan participation agreement and promissory note.
Lenders can view a history of transactions and an overview of their stewardship on the Holdings page in their dashboard.
Disbursement of Funds
Once all lender payments have been finalized and the loan has been settled, Steward disburses the funds (minus the loan origination fee) to the borrower via our secure payment facilitator, Dwolla.
Loan repayments commence 90 days after the fundraise close date. Repayments will be made by farmers on a monthly basis through their project dashboard to Steward, who then disburses these funds to lenders who have participated in the loan syndicate. These funds are accrued in the lender's Steward Wallet, ready to be withdrawn when desired.
Farmers can share updates with lenders on the use of funds and general progress of their business via the update system in their project dashboard.
What happens if a farmer is unable to repay their loan?
In the case that a borrower misses a loan payment, Steward will provide the borrower with supporting actions, such as business consultation and rescheduling of repayment. If, with this support, the borrower is still unable to make payments, the loan will be placed in default. Steward will work to recover as much capital as possible for lenders, by working with the farmer to resolve challenges, bringing on a new farmer to take over the operation, or at worst case selling assets.
Farmers who have defaulted on their loans will not be eligible to fundraise on the Steward platform in the future.