Specialty Food Association Request for Information for Administration of Program Funds

The Specialty Food Association (SFA) is focused on helping new and smaller makers bring new products to the market. As cash flow is an impediment for many of SFA’s maker members, SFA is looking to partner with an organization to create a financing vehicle for their members who need financial assistance as they grow their businesses. 

Understanding their members is a critical aspect of this project. Some key insights include:

• 50% of their 4,000 members are manufacturing (maker) members with revenue of $1.0 M or less.
• These makers are in an industry where 80% of the startups fail.
• They approximate that their members will be looking for financing ranging from $50k – $250k; funds may be used for operating or capital expenses.

Project Overview

Program Requirements

1. SFA program requirements include program design for eligible participants. Examples of programs can be:
   • Loan guarantee 
   • Loan with repayment schedule
   • Purchase order financing
   • Line of credit
   • Invoice financing
2. SFA requires a clear process for how to access funds, the eligibility requirements necessary to access funds, and the repayment structure for those accessing the funds. The program requires a clear process to determine the worthiness of their member applicants.
3. The program requires the ability to collaborate with SFA on terms and conditions, eligibility, etc. (not for individual applicants, but for the program).
4. SFA envisions establishing a revolving fund to provide substantial funding to the program, approximately $8 million over three (3) years. 
5. The Association requires an arm’s length distance from the decision-making evaluations (who gets the funds and how much) but will be integral in setting the eligibility requirements.
6. SFA requires the ability to administer the program nationally. Members reside in nearly every state in the US, so loan origination might be in any of the 50 states.  
7. SFA requires a detailed plan describing the administrator’s role and accountability, including metrics.

Note: SFA is not interested in becoming an investor in a brand, so program design should not include this type of investment.

Scope of Services

SFA is looking to partner with an organization or institution to create and administer this financial program. Responsibilities within this scope of services include:

1. Partnering with SFA to develop the program, eligibility requirements, and guidelines (for the program overall, not for individual applicants).
2. Establishing an efficient application process that is responsive to the needs of small makers. 
3. Establishing a clear process for how recipients will access funds, repay, and report on the results.
4. Partnering with SFA to announce the program to SFA members.
5. Providing excellent customer service to applicants and potential applicants.
6. Processing applications, performing all necessary analyses to determine the worthiness of applicants, and making and communicating decisions to applicants in a timely manner. 
7. Distributing funds and servicing payments over the course of the loan. 
8. Performing accounting functions, providing quarterly reports to SFA on the loan portfolio and reporting annually to SFA on the overall program.
9. Fulfilling all governmental and tax obligations. 

SFA seeks a partner with:

• Experience in successfully developing and running financial programs for small businesses. 
• Strong facilitation and project management skills. 
• A commitment to excellent customer service.
• Experience in funds management, accounting, and reporting.
• The demonstrated ability to learn and adjust.
• Familiarity with the specialty food industry and/or small makers is desirable. 

SFA seeks organizations that demonstrate an understanding of small business financial challenges and experience developing solutions to those challenges. They are open to partnerships between multiple organizations that each bring a unique set of qualifications.

Submission Information

The deadline to submit proposals is Thursday, February 13, 2024.

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