01. Sub Ag Bank

This page will discuss the idea of a Suburban Agriculture Bank (sub-ag bank).

There are a number of sustainable companies in MoCo that could benefit from having capital to expand their companies.

The sub-ag bank, is meant to be an institution to raise capital for these sustainable companies. The word “bank” was chosen because traditional banks have the role of funding traditional agricultural. It makes sense to create an outside the box bank to fund outside the box agriculture.

Someone who is experienced in a field of agriculture, such as farming, ranching, running a winery, etc. can apply for a loan from a tradition bank in order to expand an existing business or start a new business. The numerous lending institutions have certain requirements that can be met by someone who has the right work background.

However, these banks, funds, non-profit grant distributors, are not set up, in general, to lend money for what we are calling suburban agriculture. The sub-ag bank steps into the financial vacuum.

The bank has three roles:

(1) To directly connect investors with companies.

Say someone has a large portfolio and wants to invest 5% of it in local, sustainable agriculture. The investor understands the investment will be a relatively long term, relatively low return investment — a so-called slow money investment. The sub-ag bank will work to match such an investor with local companies.

(2) Crowdfunding.

The sub-ag bank will run crowdfunding efforts for local companies.

(3) Market Fund.

The sub-ag bank will create a general fund that will invest in the market, that is, in several local companies, on behalf of a group of investors.