Republic Business Credit Provides $5 Million Asset-Based Loan for Chicago-based Modern Sprout

CHICAGO –

When Modern Sprout outgrew its current lender, the Chicago-based Garden design shop and manufacturer planted new roots with Republic Business Credit to secure a $5 million asset-based loan at the close of 2023. Modern Sprout is a fast-growing innovator in the “grow-your-own” movement, combining hydroponic growing technology with sleek, stylish and sustainable indoor and outdoor garden solutions.   

Its product portfolio consists of grow kits for everything from kitchen herbs to natural pet treats. They also offer stylish grow lights, gift-ready seed starting kits, plant accessories and more. Modern Sprout sells direct-to-consumer and has partnerships with a range of businesses from standalone neighborhood boutiques to national retailers, such as Target and Kohls.  

In 2023, Modern Sprout learned that its current lending partner would not be able to support the company’s future growth plans. It needed a new partner that could not only accelerate its borrowing capabilities, but truly understand the seasonal needs of an omnichannel, founder-led business. Republic was that partner, stepping up with an ABL facility that made additional inventory funding possible during Modern Sprout’s low season.   

Modern Sprout was connected to Republic by several Midwest referral sources due to its leading reputation across the food, beverage, apparel and consumer packaged goods industries. Those introductions came from a well-known national consulting firm, investment bank and regional commercial bank that were all looking to find ways to support Modern Sprout.   

Republic provided a $5 million asset-based loan that provided additional availability on their inventory and e-commerce sales during their seasonal ramp periods.  

“Republic’s experience in the CPG industry and strong grasp of e-commerce channels made us an excellent partner for Modern Sprout,” said Eric Dorner, Republic’s VP in its Chicago office. “We are excited to support the continued growth of this company that has reinvented its industry and made at-home gardening more accessible to every consumer.” 

“It is our mission to connect people and plants through our unique products and solutions,” said Sarah Burrows, who co-founded Modern Sprout with her husband in 2013. “That is an ambitious purpose that requires us to grow quickly and be adaptable to the market. Republic’s services have allowed us not only to succeed, but to exceed our goals.”  

Republic President Robert Meyers said, “We were so impressed with the entire Modern Sprout team, and it is great when we can provide a working capital facility to people who are truly passionate about their work. The team, including Sarah Burrows, Nick Behr, Kim Chisholm, Allison Hammer, Danielle Kurtz, Chris Todd, Tony Wesley and Jessica Amata, provided us with confidence in the long-term success of this founder-led company in Chicago’s West Loop.”   

In 2024, Modern Sprout plans to expand into additional departments within Target, introduce new products and grow its partnerships with World Market and Container Store.