RSF Social Finance added three new loans to its portfolio in summer 2024, investing a total of $13.5 million in social enterprises that are integrating social and environmental innovation to maximize their impact and demonstrate the potential for systemic change. The loans鈥攖o Glavel, Mad Capital, and Goodr鈥攁re fueling advances in sustainable food systems, climate-friendly construction materials, and food security across the country.
鈥淭his group of enterprises reflects RSF鈥檚 longstanding support for regenerative agriculture and waste reduction, as well as our growing focus on models that integrate climate change solutions,鈥� said Michael Jones, RSF鈥檚 vice president of lending business development. 鈥淭hey鈥檙e all leading the way in sectors that are ripe for creative thinking.鈥�
Glavel: Climate-Friendly Construction in Vermont
Glavel听manufactures foam glass gravel, a recycled-glass insulation product that can be used to construct everything from buildings and bridges to highways and parking lots. In contrast to many construction materials, Glavel鈥檚 product is made entirely of recycled materials. The Vermont-based business also partners with workforce development nonprofits to offer job training and employment opportunities for formerly incarcerated individuals.
RSF is offering Glavel three separate loans: a $500,000 line of credit, a $2 million refinancing of existing debt, and a $3.5 million equipment loan. Together, these loans will allow Glavel to spend less on interest payments and reinvest more money into the business. They will also give the company access to the capital and equipment it needs to expand its earth-friendly product to new markets.
Mad Capital: Financing a Regenerative Agriculture Revolution
Improved biodiversity, carbon drawdown, rural economic development, better water quality鈥攖he impact of organic agriculture is powerful and systemic. However, many farmers who want to switch to organic methods struggle to find the financing they need to support the transition. Enter听Mad Capital: a nonprofit that fronts farmers the money they need to switch to organic crops and regenerative farming practices, and that allows them to pay back their loans once they start earning the higher prices organic food commands.
In 2023, RSF supported Mad Capital with a $5 million credit facility, which Mad Capital is using to provide loans to farmers in the Midwest and High Plains. This year, RSF is doubling down on its commitment with a $7 million credit facility, offered in partnership with Walden Mutual Bank, that will help even more farmers transition to more regenerative forms of farming.
鈥淩SF understood our mission from the beginning,鈥� says CEO Brandon Welch. 鈥淏ecause of their values alignment and because of the type of world they鈥檙e trying to create, we didn鈥檛 have to educate them about what we were doing and were able to dive right into the work. The new $7 million credit facility will allow us to support even more farmers as they invest in making the transition to regenerative organic farming.鈥�
Goodr: Transforming Surplus Food into Hunger Solutions
Goodr听was founded on the simple yet powerful idea that we need to feed more people and waste less food. Founder and CEO Jasmine Crowe-Houston was determined to connect the 88 million tons of food that鈥檚 wasted in the United States each year with the 44 million people across the country who don鈥檛 have enough to eat. Her tech-based solution reroutes surplus food from food service provides, corporate cafeterias, and restaurants to nonprofits that feed the hungry. This two-pronged solution is spreading rapidly across the country. RSF鈥檚听$500,000 loan听is providing the Goodr team with working capital that can support their expansion, allowing them to scale up operations, acquire a new fulfillment center, grow their staff, and expand their offerings.
鈥淕ood missions so often get lost in conversations about funding,鈥� Crowe-Houston said. 鈥淏ut RSF is fully aligned with our mission. It鈥檚 an honor to work with a partner that is willing to invest in us as we work towards it. The challenges of food waste and food insecurity continue to be urgent, and RSF鈥檚 support means we will remain equipped to respond.鈥�
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