In early 2017, the owners of Edible Earth Farm wanted to expand their organic vegetable business and move closer to their customers in Erie and Pittsburgh. They approached Mercer County State Bank (MCSB) for help purchasing the perfect property in Sandy Lake, Pa. The new location was close to the I-79 corridor, providing easy access to customers, markets and seasonal laborers. The five-employee business would also double its acreage, allowing it to add organic fruits and meat to the product offerings and increase staff – to seven in the first year and possibly 12 by year three.
MCSB relied on FHLBank’s Banking On Business (BOB) product to help fund the loan since the business didn’t have enough cash for a full down payment. "Due to the significant changes to the company’s business and large expansion, this transaction had quite a bit of risk associated with it," said Shelley Carfolo, MCSB’s Commercial Lender. "We couldn’t have done it without the BOB funds."
The owners were able to relocate in time to plant for the spring season. They also opened up deposit accounts and a line of credit at the bank. With BOB, MCSB was able to help small business in its own back yard and establish a solid customer relationship for years to come.