Loans for New Mexico’s agricultural producers

Any current vendor at the Santa Fe Farmers’ Market may apply for a loan of $250 to $5000 and on a case by case basis up to $10,000 at 6% interest from the Institute, which is administered by the Permaculture Credit Union.� Access to capital, plus professional development provided by the Institute and its partners, ensures that farmers and ranchers can provide a constant and growing food supply to Santa Fe and the region.

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How the Institute’s Micro Loan Fund Works

Terms:

• Loan amounts targeted between $250.00 and $5,000.00 and up to $10,000 on a case by case basis.
• Loans must be paid back in 40-months (48 months for loans over $5,000), and the applicant can propose a payment schedule that works for them within that time frame.
• Interest rate is currently at 6.00% fixed rate.
• Loans must be activated within 45-days of notification.
• No penalty for early repayment.
• No application fee.
• Approvals are basaed on written explanation/proposal for the use of funds with repayment strategies, implimentation and golas outlined. Loans over $5,000 also require a business plan, bank statements, tax returns and a credit check. Institute Loan Committee prescreens and approves all applicants, then refers them to Permaculture Credit Union. Additional information might be requested on an individual basis.
• Farmers may apply for additional financing if initial loan(s) are paid off or in good standing after one year.
• Applications accepted quarterly and on an emergency basis.
• All applications and financial information provided as part of this loan process are confidential.
• In the event of default, remedies will be pursued by Permaculture Credit Union.

Eligibility:

• If awarded, must establish an account at Permaculture Credit Union (PCU) with a $50.00 balance.
• Must be a member in good standing of the Santa Fe Farmers Market.
• Loan applicants must be at least 18-years-old.
• If awarded, must complete a PCU Member Assisted Share Secured Loan Application.
• Funds can be used for expansion, seasonal labor, repairs, and capital expenditures (ie, buy more animals, invest in new equipment/infrastructure, seeds, or expand crops) NOT operating expenses (ie, rent, clothing, etc.) nor for a downpayment on vehicles.� PCU has competitive auto and truck loans, if needed.
• Written explanation/proposal for use of funds will be required with repayment strategies, implementation and goals outlined.� More in depth business plan may be required depending on the size of the request.
• Exit interview to document outcomes required
• Loan recipients may be asked to participate in professional development programs for farmers to share their experiences and successes.

The Institute’s Micro Loans are making a huge difference

Thanks to all of you who have donated to build up the principle in the Institute’s micro loan program that benefits the 150 farm and ranch families who are members of the Santa Fe Farmers’ Market.� We are deeply grateful to all of you who have made this loan fund possible.

Following are some stories about loan fund recipients, and what they have done with their loans.

Gallina del Sol Farm, Stanley
So We Got Brave and Took Out a Loan!

Please note, this article was written at the inception of their loan: March 2008.

Running a small farm can be the most rewarding thing in the world, but profitability can be a challenge. There is always something that you’d like to do and rarely is the money readily available. When the micro-loan program offered by the Santa Fe Farmers’ Market Institute was initiated, I immediately thought of the grasshopper debacle of last year (they destroyed produce, trees, and flowers) and decided that the obvious answer was, of course, Guinea hens. We raise guinea hens at Gallina del Sol Farm but couldn’t let them roam freely due to our big, fast, bird-eating dog.

To remedy the grasshopper situation, I wanted to put a double fence around the garden where the guineas could hang out, but realizing the costs involved and thinking about how the two of us who run the farm would ever be able to put up a new fence (we consider ourselves to be increasingly creaky) — made us both hurt all over. So we applied for a small loan we were pretty sure we could pay off in a couple of years and were delighted to receive it. What a blessing! We not only had the money for purchasing the fencing, several gates and all the associated hardware and tools, but we were able to hire an able-bodied neighbor to help erect it (thank you, Judy!). We still had enough money left to buy all the seeds and new plants for this year (that’s always been a sticky financial problem during the season when not much money is coming in), and to pay for the spring feed bill.

I feel as if the entire year has been kick-started in a positive way, and that we will be reaping the benefits for a lot longer than the life of the loan (which we will begin paying off next week, quite happily). Having the guineas in their own run where they can interrupt any invading grasshoppers and from where they can be let out into the garden and orchard frequently, is already an improvement. They act more naturally, not having to put up with all those turkeys, and now that they are closer to the house I can better appreciate their antics (of course, we can also hear them more now that they’re closer—hmm, whose idea was this?).

Thanks to all of those involved who connected farmers like us with the Permaculture Credit Union loan people! We appreciate it immensely!

Barbara Mann (and Wendy McGuire)
Gallina del Sol Farm, Stanley

Camilla Trujillo, Tonita’s Best Balms

Camilla Trujillo grew up in northern New Mexico and seven years ago started bringing an old timey hand balm to Market that she learned how to make from her grandmother in Nambe. “It’s made out of beeswax and herbs in an organic or fat base,” Camilla said. “Everybody’s grandmother used to make it,” she said, “and about 20 years ago, I asked my grandma to show me how to make it.”

Camilla is a two-time recipient of micro loans from the Institute. Her first loan of $350 helped her to expand her line from just the hand balm to include a foot and “tender balm” for people with sensitive skin.

The following season, she applied for a second loan, which has helped her expand even more. She now carries seven different balms, all based on regional, herbal know-how from Grandma Tonita’s day. There’s even one for the scalp to thicken hair, and one to calm the nerves.

Camilla said she is inspired to work with the old time, northern New Mexico knowledge that her grandmother, Tonita, and her great grandmother, Camila, after whom she is named, possessed (the nuns at St. Vincent Hospital erroneously added an extra “L” to Camilla’s name on her birth certificate!). “I endeavor to bring something from the past into the future and meet people in the present moment with a sure fire remedy for almost anything that ails them,” she said. Camilla now also features tinctures and fresh herbs, like Osha, that she gathers from the higher elevations up north. Once you get a wiff of Osha, you know why it is so good for any kind of respiratory ailment. Using the knowledge of her northern New Mexico elders, Camilla brings effective remedies to the Market for everyone to enjoy, and, she said, “I’ll talk anyone’s ear off who wants to learn more about our living, intact Northern New Mexico culture.”

Even though Camilla’s loans have been on the small end, she says they’ve made a big difference in her business. “I am very appreciative of the wonderful loan money. It’s helped me create a better product, expand my line, and helped to keep me at ease about marketing, because I don’t have to feel panicky about not having the supplies I need to grow into more production.”