Imagine a world where farms have access to the financial support they need to grow and thrive. That’s exactly what Steward, an online lending platform founded by Dan Miller, is striving to achieve. Steward is revolutionizing farm financing by offering short-term loans secured by property to farms and agriculture projects. What sets Steward apart is its unique lending community, which allows the platform to bypass regulation from the SEC. In 2022, Steward experienced remarkable growth, lending $10 million to 19 agricultural projects. With a strong deal flow fueled by referrals, over 75% of their projects come from trusted sources. With over 3,000 funders on their platform and the option for both short-term and long-term credit, Steward is well-positioned for long-term success. As the demand for healthy foods, values-aligned investing, and land stewardship continues to rise, Steward plans to expand into other verticals within regenerative agriculture and scale its lending capabilities. This forward-thinking platform has already received institutional funding and aims to close financing on a $30 million processing facility in the near future. Steward is truly transforming the way farms access financing and paving the way for a more sustainable and prosperous agricultural industry.
Overview of Steward
Introduction to Steward
Welcome to an overview of Steward, the online lending platform that is revolutionizing the way farms and agriculture projects access capital. Founded by Dan Miller, Steward aims to provide financial support to the regenerative agriculture movement by offering short-term loans secured by property. With an emphasis on values-aligned investing and a commitment to supporting healthy food demand, Steward has quickly gained momentum in the agricultural lending space. In this article, we will explore the backstory of Steward, the unique services it offers, its growth and success, as well as the benefits and impact it has on the industry. So, let’s dive in!
Founder and Background
Steward was founded by the visionary entrepreneur Dan Miller, who recognized the need for accessible and affordable capital for farmers and agriculture projects. With a deep understanding of the challenges faced by farmers and a passion for regenerative agriculture, Miller set out to create a platform that would address these issues. His background in finance and sustainable agriculture made him the ideal candidate to lead this endeavor. Through his leadership and commitment to the cause, Steward has become a trailblazer in the industry, offering innovative lending solutions that have the power to transform the farming landscape.
Services Offered
Steward’s primary service is the provision of short-term loans secured by property to farms and agriculture projects. The platform acts as a bridge between lenders, known as funders, and borrowers, enabling farmers to access the capital they need to grow their businesses. By connecting these two parties, Steward is able to facilitate transactions that support sustainable agriculture practices and regenerative farming methods. This unique approach sets Steward apart from traditional lending institutions and allows farmers to access capital that may not be available to them through other channels.
Unique Features of Steward
Property Secured P2P Loans
One of the standout features of Steward is its focus on property-secured peer-to-peer (P2P) loans. By using property as collateral, Steward is able to mitigate risk for lenders and provide favorable loan terms for borrowers. This approach creates a win-win situation, where farmers can access capital at competitive rates, while funders have the security of knowing their investments are backed by tangible assets. This unique lending model has proven to be highly effective, providing both parties with peace of mind and facilitating the growth of sustainable agriculture projects.
Exemption from SEC Regulation
Unlike traditional lending platforms, Steward operates under an exemption from SEC regulation. Loans listed on Steward are directed to a specific lending community and are not subject to the same level of oversight as loans offered by banks or other financial institutions. This exemption enables Steward to provide loans that may not meet the stringent requirements of more traditional lenders. By operating outside of the SEC’s purview, Steward is able to offer flexible financing solutions that cater specifically to the needs of the regenerative agriculture community.
Referral-Based Deal Flow
Steward’s deal flow is primarily sourced through referrals, highlighting the platform’s strong reputation and the trust it has built within the industry. Over 75% of projects listed on Steward come from referrals, illustrating the confidence farmers and agriculture projects have in the platform. This referral-based approach ensures that only the most promising and viable projects are listed on Steward, providing funders with a carefully curated selection of investment opportunities. This strategic sourcing of projects contributes to the overall success and growth of Steward.
Large Funder Base
Steward boasts an impressive funder base, with over 3,000 individuals and institutions actively participating on the platform. This diverse group of funders represents a range of capital sources, including both short-term and long-term options. With such a large and diverse pool of funders, farmers and agriculture projects can access the capital they need, regardless of their specific requirements. This breadth of funding options sets Steward apart from other lending platforms and ensures that farmers can obtain the financial support necessary to cultivate their businesses.
Flexible Credit Options
In addition to its large funder base, Steward also offers flexible credit options to borrowers. Recognizing that each farm and agriculture project has unique needs, Steward provides tailored credit solutions that align with their specific circumstances. Whether a borrower requires short-term financing for operational expenses or long-term capital for infrastructure investments, Steward has the flexibility to accommodate these requirements. By offering customizable credit options, Steward demonstrates its commitment to empowering farmers to make the best financial decisions for their businesses.
Benefit of Rising Interest Rates
Steward has also benefited from the recent rise in interest rates. As traditional lending institutions increase their rates, Steward’s platform becomes an attractive alternative for farmers seeking affordable capital. By providing competitive interest rates, Steward helps farmers keep their borrowing costs low, enabling them to invest in their operations and drive growth. This unique benefit highlights Steward’s agility and its ability to adapt to market conditions, ensuring that it remains a trusted and sought-after platform for farmers and funders alike.
Growth and Success of Steward
Significant Growth in 2022
Steward experienced remarkable growth in 2022, with $10 million in lending distributed across 19 agricultural projects. This significant increase in lending demonstrates the platform’s ability to attract borrowers and funders alike. Farmers and agriculture projects have embraced Steward’s innovative lending solutions, recognizing the value it brings to their operations. With each successful loan, Steward solidifies its position as a leader in the agricultural lending space and sets the stage for continued growth and success.
Expansion into Other Verticals
Building on its success in the agricultural sector, Steward has plans to expand into other verticals within the regenerative agriculture space. By broadening its focus to include additional areas of the industry, Steward aims to support a wider range of projects and further impact the sustainable farming movement. This expansion not only benefits borrowers by providing them with more access to capital, but it also attracts a diverse group of funders who are looking to invest in different aspects of regenerative agriculture. Steward’s expansion into other verticals represents a natural progression for the platform as it continues to grow and evolve.
Institutional Funding and Investors
To fuel its growth and expand its lending capabilities, Steward has secured institutional funding from a variety of investors, including family offices and institutional investors. This influx of capital not only strengthens Steward’s financial position, but it also demonstrates the confidence that industry experts have in the platform. By attracting institutional investors, Steward is able to leverage their expertise and knowledge to drive further growth and success. The support from these investors serves as a testament to the viability and potential of Steward’s business model.
Future Growth Expectations
Looking ahead, Steward expects to experience a step-change in growth in the coming years. With plans to close financing on a $30 million processing facility, Steward is positioning itself for long-term success. This facility will allow Steward to scale its lending operations and provide even more support to farmers and agriculture projects. Additionally, as the demand for healthy foods continues to rise and interest in values-aligned investing grows, Steward is well-positioned to capitalize on these trends. By aligning its mission with societal shifts towards land stewardship, Steward is poised for exponential growth and a lasting impact on the regenerative agriculture movement.
Benefits and Impact of Steward
Support for Regenerative Agriculture
At its core, Steward is committed to supporting regenerative agriculture practices. By providing farmers and agriculture projects with access to affordable capital, Steward enables them to implement sustainable farming techniques that restore the health of the land and promote biodiversity. With Steward’s support, farmers can invest in regenerative practices such as cover cropping, rotational grazing, and agroforestry. These practices not only improve soil health and water retention but also reduce the need for synthetic inputs, minimizing the environmental impact of farming. By facilitating the adoption of regenerative agriculture, Steward contributes to a more sustainable and resilient food system.
Scaling Lending Capabilities
Steward’s ability to scale its lending capabilities is another significant benefit it offers to the regenerative agriculture community. As the platform continues to grow, it can provide increasing amounts of capital to farmers and agriculture projects. This scalability is crucial for the long-term success of regenerative agriculture, as it ensures that farmers have the financial resources necessary to implement and maintain sustainable farming practices. By scaling its lending capabilities, Steward helps drive the adoption of regenerative agriculture on a larger scale, accelerating the transition to a more sustainable and resilient food system.
Contributing to Healthy Food Demand
With the increasing demand for healthy and sustainably produced food, Steward plays a vital role in supporting this market. By providing capital to farmers who prioritize regenerative practices, Steward helps meet the growing demand for ethically and sustainably produced food. These farmers are often unable to access traditional financing options due to the unique nature of their operations. Steward fills this gap by offering loans tailored to the needs of regenerative farmers, enabling them to expand their operations and produce more high-quality, nutrient-dense food. By contributing to healthy food demand, Steward promotes a more conscious and sustainable approach to agriculture.
Values-Aligned Investing
Steward’s platform also appeals to investors who prioritize values-aligned investing. With a growing number of individuals and institutions seeking to align their investments with their values, Steward provides an avenue for them to support regenerative agriculture and contribute to positive environmental and social outcomes. By offering a range of investment opportunities that align with these values, Steward attracts a diverse group of funders who are passionate about sustainable farming. This values-aligned investing not only provides farmers with the financial support they need but also fosters a community dedicated to transforming the future of agriculture.
Cultural Shift towards Land Stewardship
Steward’s impact extends beyond the realm of finance, as it contributes to a wider cultural shift towards land stewardship. By promoting regenerative agriculture and providing financial support to farmers who prioritize sustainable practices, Steward helps shape the narrative around farming. As more people become aware of the environmental and social benefits of regenerative agriculture, they are increasingly drawn to support these farmers. Steward’s platform facilitates this shift by connecting farmers and funders who share a common vision for a sustainable food system. Through its work, Steward is helping reshape the perception of agriculture and inspiring a collective commitment to land stewardship.
Conclusion
In conclusion, Steward is not just an online lending platform for farms; it is a catalyst for change in the agricultural industry. Founded by Dan Miller, Steward provides accessible and affordable capital to farmers and agriculture projects, supporting the growth of regenerative agriculture. With its unique features, such as property-secured P2P loans and exemption from SEC regulation, Steward creates a mutually beneficial environment for borrowers and funders. The platform’s significant growth, expansion into other verticals, and institutional funding signify its success and potential for future growth. Moreover, Steward’s commitment to regenerative agriculture, scalability, and contribution to healthy food demand make it a vital player in the industry. By aligning its mission with societal shifts towards land stewardship and values-aligned investing, Steward is driving transformative change and paving the way for a more sustainable and resilient food system.
