Fund relaunched to offer interest-free loans to organic start-ups

The fund is designed to support small businesses that follow environmentally sustainable practices
The fund is designed to support small businesses that follow environmentally sustainable practices

Organic and ecological food and farming enterprises now have the opportunity to apply for interest-free, unsecured loans of up to £25,000.

The loans are part of the relaunch of the Dean Organic Fund, a charitable initiative managed by the Organic Research Centre.

The fund is designed to support small businesses that follow organic and environmentally sustainable practices, particularly those who may find it difficult to access conventional financing.

As part of the initiative, flexible loan terms of between two and five years are being offered, with amounts ranging from £5,000 to £25,000.

Since its establishment in 2018, the fund has supported nearly 50 enterprises across the UK.

Chris Jones, adviser to the Dean Organic Fund, said: “We are looking to make a big impact, and support a wide variety of enterprises founded on organic farming principles.

"The fund is open to applicants from all walks of life, and may just provide that turn-key investment to a well-founded enterprise.”

Past businesses to have gained a loan include everything from organic dairies in Devon, to organic pop-up shops on Scotland’s North Coast 500 route.

One of the beneficiaries, Sally Hempsell, used a £25,000 loan to launch Grazing Matters, her conservation grazing business in North West England.

The funds helped her purchase cattle and a four-wheel drive vehicle to move them between sites.

She said: “The loan was instrumental in allowing me to set up the business. Farming can work alongside the conservation of special habitats and biodiversity."

Mr Jones noted that each loan is tailored to fit the individual business’s needs, with realistic repayment terms.

“We do not expect a return on our investment, but we do expect to see the legacy fund delivering growth in the organic sector; with loan applications reaching a high bar of planning and thought.”

Funding can be used for investments in equipment, stock, or other forms of capital — excluding land and property — to support innovation and expansion.

Applicants may come from a range of entities, including sole traders, partnerships, limited companies, and community or social enterprises with legal status.

“Applicants will preferably be certified organic producers or in conversion, but otherwise should follow practices closely aligned to organic principles,” added Mr Jones.

“This really is a golden opportunity for businesses exploring, innovating or expanding in the organic sector.”