Greater Commercial Lending Completes $50 Million in Financing for High-tech Berry Farm in Kentucky

Rhea-AI Summary

AppHarvest, through Greater Commercial Lending, has secured $50 million in USDA-guaranteed financing for a new 30-acre hydroponics farm in Somerset, Kentucky. This farm will utilize sunshine, rainwater, and up to 90% less water than traditional agriculture, aiming for yields up to 30 times more. Expected to create 142 jobs, it will include a greenhouse and facilities for processing strawberries and cucumbers. The project emphasizes sustainable practices and effective financial strategies in a high-cost lending environment.

Positive

• Secured $50 million in USDA-guaranteed loans.
• Expected yields of up to 30 times that of traditional agriculture.
• Creation of approximately 142 jobs in the Somerset community.
• Utilization of sustainable farming practices, using up to 90% less water.

Negative

• None.

USDA-guaranteed Loans Will Help AppHarvest Build New 30-acre Hydroponics Farm that Uses 90% Less Water than Open-field Agriculture

RENO, Nev., Oct. 20, 2022 /PRNewswire/ -- Greater Commercial Lending (GCL), which provides loans to businesses and organizations in under-served and rural communities, has completed about $50 million in financing for a high-tech berry farm in Somerset, Kentucky. The financing consists of two loans guaranteed by the U.S. Department of Agriculture (USDA).

The farm, which is designed to grow produce using sunshine, rainwater and up to 90% less water than open field growing, is expected to be operational by the end of the year. It will produce yields up to 30 times that of traditional agriculture and prevent pollution from agricultural runoff.

The Somerset farm is owned and operated by AppHarvest, LLC, a subsidiary of AppHarvest, Inc. (NASDAQ: APPH, APPHW), a sustainable food company in Appalachia building some of the world's largest high-tech indoor farms to grow affordable fruits and vegetables at scale. AppHarvest is a public benefit corporation and a Certified B Corp.

"Access to high-quality fruits and vegetables is critical for all Americans. GCL is pleased to support AppHarvest's sustainable, high-tech agricultural process by providing access to government-guaranteed loans – a low cost and long-term financing source for these important agricultural projects," said Jeremy Gilpin, executive vice president of GCL, one of the largest providers of USDA loans.

Eighty percent of the GCL-arranged financing for the Somerset, Kentucky farm is guaranteed by the USDA through its Business and Industry Rural Development program and Rural Energy America Program (REAP). The financing structure includes participation by GCL parent Greater Nevada Credit Union, Community Bank and Trust of Georgia and other credit unions, community banks, and secondary market groups.

"Securing non-dilutive sources of capital to fund our growth has been a top priority since going public early last year, and I'm pleased with our team's ability to source lower-cost funding in a higher-cost lending environment," said AppHarvest President David Lee. "This funding agreement with the USDA allows us to continue to scale operations as we plan to bring the Somerset farm and two additional CEA (controlled environment agriculture) facilities online before the end of the year, which would quadruple our farm network and diversify our product portfolio to include berries and salad greens."

The project is expected to create about 142 jobs for the community. The Somerset farm will consist of a 30-acre greenhouse, cooling and packing room and office that will process strawberries and small cucumbers.

About Greater Commercial Lending

Greater Commercial Lending (GCL) is a credit organization that brings together credit unions and community lenders from around the U.S. to provide government-guaranteed loans to businesses and initiatives in rural and under-served markets throughout the U.S. and its territories. It helps finance key infrastructure services, like power, renewable energy, transportation and fiber optic, as well as schools, hospitals, restaurants, agriculture, hotels and manufacturers. GCL partners with the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA), which guarantee loans, to arrange credit at favorable terms. GCL is a subsidiary of Greater Nevada Credit Union (GNCU). www.GreaterLending.com

About Greater Nevada Credit Union

Greater Nevada Credit Union (GNCU) is headquartered in Carson City, Nevada and has been helping Nevadans with their financial needs since 1949. The credit union serves more than 82,200 consumers and small businesses and has over $1.73 billion in assets. GNCU's subsidiaries include Greater Nevada Mortgage, Greater Commercial Lending and Greater Nevada Insurance. GNCU is a certified Community Development Financial Institution (CDFI), and has been consistently recognized as a Best Financial Institution in many of its service areas and as a top employer by the Reno/Tahoe Best Places to Work Awards and is the USDA Lender of the Year. GNCU is also the title sponsor of Greater Nevada Field in Reno. For more information, call (800) 421-6674 or visit www.gncu.org.

About AppHarvest

AppHarvest is a sustainable food company in Appalachia developing and operating some of the world's largest high-tech indoor farms with robotics and artificial intelligence to build a reliable, climate-resilient food system. AppHarvest's farms are designed to grow produce using sunshine, rainwater and up to 90% less water than open-field growing, all while producing yields up to 30 times that of traditional agriculture and preventing pollution from agricultural runoff. AppHarvest currently operates its flagship farm – about the size of 50 football fields – in Morehead, Ky., producing tomatoes. The company is developing a network of farms to produce a variety of vine crops, salad greens and berries with three more farms currently under construction that are expected to be operational by the end of 2022. For more information, visit https://www.appharvest.com/.

Media contact:
Michael-Jon Romano
Allison+Partners
Michael-Jon.Romano@AllisonPR.com

 

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SOURCE Greater Commercial Lending

FAQ

What financing did AppHarvest secure for the Somerset farm?

AppHarvest secured $50 million in USDA-guaranteed financing through Greater Commercial Lending.

How much water will AppHarvest's new hydroponics farm use compared to traditional farming?

The new hydroponics farm will use up to 90% less water than traditional open-field agriculture.

What types of produce will be grown at the new farm in Somerset, Kentucky?

The Somerset farm will grow strawberries and small cucumbers.

How many jobs will the Somerset farm create?

The project is expected to create approximately 142 jobs for the community.

What is the expected yield of the new farm compared to traditional agriculture?

The new farm is expected to produce yields up to 30 times that of traditional agriculture.