This is a subscriber-only article.

For a limited time, join Entrepreneur+ and save 50% during our Cyber Monday sale. Use code SAVE50.

Join Now

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

Why Big Brands Are Offering Big Funds to Small Businesses Small businesses are cashing in from corporate loans and grants.

By Michelle Goodman

This story appears in the January 2016 issue of Entrepreneur. Subscribe »

Eirik Johnson
Jane Yuan of Simple & Crisp.

For Jane Yuan, the owner of Seattle-based Simple & Crisp, an order from Whole Foods Market to sell her dried-fruit crackers nationally was the opportunity of a lifetime. But she didn't have the money to buy two additional dehydrators at $17,000 a pop, which she'd need to scale up and fill those orders, as well as those from her other customers. "That became a cash-intensive launch," Yuan says, "and being a small business, we didn't have access to capital that quickly."

So she turned to Whole Foods' loan program, borrowing $37,000 for five years, at 5 percent interest. That was in 2014. She took a second loan from the retailer in 2015 for $50,000 at the same terms. Today, Simple & Crisp products sell in approximately 300 Whole Foods stores, as well as 100 other grocery and specialty-food shops nationwide.

Since 2006 Whole Foods has doled out $18 million in low-interest loans to 235 of its North American small-business suppliers, according to Denise Breyley, who scouts out independent farmers and food artisans for Whole Foods in the Pacific Northwest and acts as the regional point of contact for the company's loan program. Terms vary, but loans have ranged from $1,000 to more than $100,000, with interest rates averaging 5 percent and full repayment typically due in two to five years.

Editor's Pick

Related Topics

Business Ideas

This Teacher Sells Digital Downloads for $10. Her Side Hustle Now Makes Six Figures a Month: 'It Seems Too Good to Be True, But It's Not.'

When one middle school teacher needed to make some extra income, she started a remote side hustle with no physical products and incredibly low overhead. Now she brings in six figures each month, and offers courses teaching others how to do the same.

Leadership

How to Win Over the Room With Effective Persuasion Skills

The art of persuasion is not just about the notes, the data, and the pitch; it's about creating a connection that resonates with the audience. We explore how a blend of story, active listening, and genuine interaction can not only capture attention but also win hearts and minds, setting the stage for achieving success in any meeting.

Leadership

Great Leaders Must Be Great Coaches — Here's How to Become One

To be a successful leader, you must become an expert in how to help others grow and develop. Here's a research-driven approach for entrepreneurial leaders to coach and effectively develop their teams.

Living

'I Haven't Ticked All the Boxes Yet.' Hilary Duff Reveals Her Next Venture After More Than 2 Decades in the Spotlight — and the Surprisingly Relatable Key to Her Enduring Success

The actor talks entrepreneurship, secrets to success and her latest role as chief brand director for Below 60°, a product line of air fragrances.

Travel

6 Secret Tools for Flying First Class (Without Paying Full Price)

It's time to reimagine upgrading. Here's how to fly first class on every flight, business or personal.

Business News

An Ivy League University Is Teaching the Secret of Taylor Swift's Success

Several major universities have added courses dedicated to studying Swift's star power.