ThreadCapital’s New Low-interest Loan Program for Shellfish Growers

By shellfishNews
  • Thread Capital will be offering a low-interest loan program for shellfish growers later this year
  • The loan program is being established with a $1 million appropriation from the NC General Assembly in response to a study from the NC Coastal Federation
  • Growers can borrow up to $50,000 for equipment and supplies
  • Crop insurance or NAP coverage will be required

Later this year, Thread Capital will be offering a new low-interest loan program for shellfish growers who want to expand their business, or who are new to the industry and are looking for capital to start their business. Thread Capital is a subsidiary of the NC Rural Center that was launched in 2018 to provide much needed capital for small business owners in our state. They focus specifically “on small businesses that are owned by people of color, women, low-income individuals, and rural-based individuals,”.

In December of 2018, the North Carolina Strategic Plan for Shellfish Mariculture was submitted to the NC General Assembly with 7 major recommendations. Recommendation number 3 outlined the need for a low-interest loan program and funding from the General Assembly to establish it.   

In June of 2019 the NC General Assembly passed legislation authorizing the North Carolina Coastal Federation to “study a low-interest loan program to provide start-up and expansion capital to shellfish growers,”. This included determining ideal loan amounts, uses, and terms.

The Coastal Federation completed their study and brought it before the Assembly in March of 2020. They recommended $1 million be appropriated to establish a low-interest loan program, and that a federal crop insurance program be provided for shellfish growers. This proposal was approved and funding was provided for the loan program in July of 2021 (N.C. Gen. Stat. § 113-211). 

Phase 1 of the loan program will focus on supporting existing and new growers, and will offer loans up to $50,000 to establish or expand their shellfish aquaculture business. Funds can be used for “equipment and supplies for intensive shellfish aquaculture operation, water column leasing, and bottom culture leasing.” Crop insurance or NAP coverage will also be required for businesses to receive funds. More details about Phase 2 of the loan program will be available once federal crop insurance is available for shellfish growers. 

By Charlotte Mesmer