Industry demand for East Fork’s quality plant genetics and value-added products is driving the expansion of their breeding business and in-house manufacturing.
East Fork Cultivars is a USDA Organic farm in Takilma, OR that raises Sun+Earth-certified craft hemp. Their core mission is to improve the quality of, and consumer access to, low-THC plant genetics that maximize the healing potential of hemp, and by extension, their diverse value-added product offerings. What started as a modest market-garden operation in 2015 has since scaled to 24 acres of commercial production supported by a state-of-the-art, in-house plant breeding program, value-added processing facilities, and a vibrant e-commerce storefront.
East Fork has grown into a regional model of regeneratively grown, consumer-facing hemp production, reporting top-line revenue growth every single year since 2018, even in the midst of a volatile market. This loan will support multiple facets of the business’s continued growth and diversification, including refinancing an earlier construction loan, supporting the development of the plant breeding and seed sales business, and adding to the East Fork product line by integrating a recently acquired manufacturing facility.
In addition to scaling their own value-added products, the new facility will also allow East Fork to expand the manufacturing of hemp-based products for other brands. Product development work with Dr. Bronner’s and other natural product industry leaders headline East Fork’s newest partnerships in this area.
Founders Nathan and Aaron Howard started East Fork as a means to provide relief and healing for their oldest brother Wesley’s medical conditions. At every level, a commitment to health, social justice, and regeneration continues to guide the design and management of the farm and its many businesses:
This lending opportunity accepts funds via wire transfer only.
This loan will be made to Hope Mountain Holdings LLC and East Fork Hemp LLC, Oregon State limited liability companies that are both wholly owned subsidiaries of East Fork Group, Inc. East Fork companies grow and sell low THC hemp and value-added products.
This loan will be used to refinance the mortgage at 10325 Takilma Rd. which is coming due in August of 2023. This loan will be secured by a first mortgage against this property as well as a lien on all general business assets of East Fork Hemp LLC
The total loan amount is $822,500.00 which will assist East Fork Hemp, grow and expand their business.
This loan is set at a 7.5% interest rate, with a 60-month term, and interest-only payments for the first twelve months beginning one month after closing, followed by principal and interest payments following a thirty year amortization schedule for the remainder of the loan term.
10325 Takilma Rd. Property Refinance: $640,090.71 This includes refinancing a five-year loan that was made by Steward in 2018 and matures in August of 2023
Manufacturing Facility Integration: $65,000.00 East Fork acquired a small manufacturer in late 2022 that will allow them to deliver more value-added products. These funds will be used for equipment upgrades and pursuing third-party certifications
Co-Manufacturing & Co-Packing Services: $55,000.00 As a part of the acquisition, East Fork has been able to add new revenue and margin by creating in-house brand product lines. They’ve begun selling co-manufacturing and co-packing services. Funds will be used for several small pieces of equipment, staffing, and other expenses to help get this new revenue stream ramped up
Working Capital: $30,234.29 Additional working capital will assist East Fork in increasing efficiencies and ramping up production within their diversified business lines
Loan Fees & Closing Costs: $32,175.00 Fees will go towards origination fees, diligence processing fees, and title fees
Total Budget - $822,500.00
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