There are great companies out there who could be creating value and jobs for our community at a faster pace with greater access to capital within the first 3 years of operations. As part of a holistic vision for venture philanthropy, Access Ventures has created two new revolving loan funds for regional businesses! The most recent recipient of Access Venture's "Growth Loan" is USChia.
USChia is at a tipping point, and was in need of more chia seed to meet demand in 2015. USChia’s business model relies on access to ample amounts of US grown chia. By contracting with local KY farmers, and leveraging a patent from the University of Kentucky for equine grade chia, USChia was able to achieve savings for their chia grown in 2013. The harvest in 2014 was much smaller, and a Growth Loan from Access Ventures enabled USChia to capitalize on a bulk order of Florida (US grown). Without the additional seed, USChia would quickly run out of product and miss out on sales opportunities at upcoming world equestrian events. Finding cash to purchase inventory as quickly as possible was crucial for survival. This was a triple win for USChia as they solved supply issues around offering US grown seed in 2015, improved profit margins with their largest bulk purchase ever, and did it all without having to give up additional equity in the company.
The Growth Loan is part of a three step solution which includes a second loan called a “Catalyst loan” and Kiva Zip. All are meant to help a business grow early on, and become bankable within 2 to 3 years. In addition to the Growth Loan of up to $35,000, the Catalyst loan of up to $9,000 for businesses in operation under a year, and. USChia is a great example of a business utilizing two solutions at once by obtained a $5,000 Kiva Zip loan last fall for harvesting equipment. Access has been a key promoter and sponsor in the creation of Louisville’s Kiva City. Access Ventures is able to endorse local entrepreneurs as a Kiva trustee, but other organizations and individuals are encouraged to make endorsements as well. It comes down to understanding the purpose of the loan, whether the owner has more social capital than financial, and choosing the loan (or loans) that are the best fit for their business.
Access Ventures is an impact-investment group that deploys holistic investments to see communities flourish. Our vision is to impact the world by helping all people, communities and businesses realize their full potential. We provide capital to the best solutions and organizations with significant potential for impact within the community. We create tailored and holistic investment strategies that meet a variety of needs with a layered and integrated capital approach predicated on our principle belief that all people matter. We step into challenging situations, wrestle with its complexities, and create holistic solutions that enable human flourishing.
