Financial products offered by Steward

Steward prides itself on its flexibility in working with farmers and ability to structure each loan according to the needs of each specific farm.

Funding from loans can be used for any costs related to an agricultural enterprise, such as land, infrastructure, equipment and operations.

Steward offers the following loan products for eligible agricultural projects.

1. Micro Loan

The microloan is for investments with an immediate return and is often used as a starter loan to build the relationship between Steward and a farmer. Micro loans have been used for irrigation, fencing, equipment, seeds, operations and working capital.

The goal of the loan is to boost the farmer’s revenue and put them in a position to make more significant future investments with Steward’s Development Loan.

  • Loan Amount: $10,000 - $50,000
  • Term: 2 years
  • Interest Rate: Varies, normally 8-10% (US)
  • Interest Payment Schedule: All Interest accrued
  • Collateral: Unsecured
  • Farmer Equity Contribution: 10%+

2. Development Loan

The Development Loan is best for farmers who’ve been operating their own business for 3+ years, often on leased land, but who are ready to purchase land and make a long term commitment. The funds can be used to finance the purchase of property and significant capital and operational investments.

  • Loan Amount: $50,000 - $1,000,000
  • Term: 5 years
  • Interest Rate: Varies, normally 6-10% (US)
  • Interest Payment Schedule:
    Year 1: All interest accrued
    Year 2: 25% interest current / 75% interest accrued
    Year 3: 50% interest current / 50% interest accrued
    Year 4: 75% interest current / 25% interest accrued
    Year 5: 100% interest current
  • Collateral: First mortgage loan, secured by real property and business assets
  • Farmer Equity Contribution: 10%+

3. Stabilized Loan

Steward can provide long-term financing for farmers operating on a property they already own and on which they have significant revenue and cash flow.

  • Loan Amount: $100,000 - $2,500,000
  • Term: 10-30 years
  • Interest Rate: Varies, but normally 5-8% (US)
  • Interest Payment Schedule: All interest paid current, with amortization
  • Collateral: First mortgage loan, secured by real property and business assets
  • Farmer Equity Contribution: 20%+

Interest rates

Steward does not have standard interest rates but instead bases them on the specifics of the applicant and the project. Generally, rates for unsecured microloans are 8-10% and rates for mortgage loans are 5-10%. 

The components that drive our determination of the interest rate for the project include:

Collateral

Is the loan secured by land ownership, lease, equipment, or unsecured?

Farmer equity contribution

How much equity has the farmer contributed to the business? How much can they bring to the loan closing? Cash is preferred but farming related assets, such as a tractor or hoophouse, can be credited as equity too

Farmer Experience

How many years of experience does the farmer have? How many of those are as a farm owner and/or manager?

Cash Flow/Existing operations

Does the project have existing cash flow from operations? Or is the project a new farm on a new piece of land that will take a few years to develop recurring, reliable cash flow?


Did this answer your question?


Powered by HelpDocs