Seedlings Loan Readiness Program

Of the three (or four, or five, depending who you ask), "C’s” of credit, “Character” has always been the most problematic. In the redlining era, this was often used as a pretext to only lend to people who looked and sounded a certain way. And in the modern era, banks have consolidated and scaled so rapidly that the character portion of a small business loan has devolved into a FICO score alone. We are aspiring to return to a relationship-based lending model powered by those on the ground, doing the work.

In partnership with area non-profits, including the Hannah Grimes Center for Entrepreneurship of Keene, City Seed of New Haven, Hope and Maine of Providence, the Bread Bakers Guild, and others to come, we are developing a different sort of character test for small farm and business lending.

Rather than relying on FICO scores, this program relies on something more meaningful: demonstrated commitment. Through peer endorsements, community references, and active participation in the program itself, Seedlings participants demonstrate their loan readiness not only on paper, but in practice.

Launched with the pilot program in December of 2024, we are now commencing our fifth cohort of 5-7 businesses for an intensive eight-month journey. Guided by skilled facilitators, participants work through live case studies (each other’s businesses) and deep dive into cash flow forecasting — connecting entrepreneurial passion to the financial literacy that lenders require. Participants have the opportunity to apply for a below-market-rate loan ($20,000 or more) through Walden Mutual, and are ready to walk into any banking relationship with confidence.

The program has benefited from — and passes regulatory muster as a result of — the outside guarantor support of Chris Lindstrom, Abby Rockefeller, Lisa Holmes and other anonymous supporters, and we’re grateful to have them as partners.

lOAN OVERVIEW

To date, the program has served twenty-two businesses (including Revival Road Farm and East Alstead Roasting Co. on the following pages) across four cohorts, deploying capital to entrepreneurs who may not have had another path to financing.

Have an idea for a nonprofit partner to co-host our next Seedling cohort?
Drop us a line at hello@waldenmutual.com