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. Steward receives these repayments and disburses them to lender's Steward wallets on the 15th of the month so that lenders with multiple holdings will receive all payments in a single transaction.
Lenders will receive their first repayment on the 15th of the month following the 90 day deferment period.
For example, if a fundraise closes on March 03, the first repayment will be due on June 15
Project Updates (Coming Soon)
A broadcast system, allowing farmers to share updates with lenders on the use of funds and general progress of their business, is in the works!