Fibers Fund Invests in Botanical Colors with New Loan
Botanical Colors founder Kathy Hattori. Photo by Ben Lindbloom, courtesy Botanical Colors
Low-interest financing will support growth and resilience for premier U.S. natural dye company
The Fibers Fund is proud to announce its third loan, provided to Botanical Colors, a Seattle-based company that supplies natural dyes to artisans, dye houses, and industrial clients. Founded in 2010 by Kathy Hattori, Botanical Colors also works with regional organic and regenerative farmers to source U.S.-grown dye plants.
This financing, a low-interest, five-year loan, will support Botanical Colors to free up working capital, invest in new revenue lines, and maximize the potential of its new, larger dyehouse and workshop space. The new loan builds on the Fibers Fund’s earlier TA grant support to Botanical Colors, which helped the company implement inventory tracking and revenue projection systems to improve cash flow. The new loan helps further the shared mission of Fibers Fund and Botanical Colors to promote soil-based fibers, textiles, and natural dyes as an integral part of holistic regenerative agricultural systems.
About Botanical Colors and Kathy Hattori
Botanical Colors offers natural dyes and education to textile artisans and dye enthusiasts around the world. The company supports U.S. regional farmers using organic and regenerative soil practices to grow dye plants such as indigo, coreopsis, and marigold, as well as offering a wide assortment of organic, Global Organic Textile Standard (GOTS)-certified, and food waste-derived dyes from around the world.
In addition, Botanical Colors offers custom production dyeing with natural dyes for a range of brands and designers. They provide garment dyeing scalable from small to high volume runs, with natural colors that are earthy, brilliant, non-toxic and meet standard light and wash tests. Their customer base includes: Converse, Eileen Fisher, Greg Lauren, Harvest & Mill, Kata Golda, Madewell, Older Brother, BSides, LightArt and more.
Recently, Botanical Colors launched its new Re:COLOR service, a service for individual customers to refresh favorite clothing pieces with vibrant natural dye colors and patterns. Re:COLOR offers customizable online ordering for all types of garments.
Founder and president Kathy Hattori is a recognized authority on natural dyes, pigments, and commercial applications of natural dyes and has worked in the field since 2003. She developed numerous commercial processes using natural dye extracts in the industrial textile environment. She consults and advises brands and retailers on their natural dye implementation strategies and has worked with the largest natural dye houses in the U.S. Kathy teaches, lectures, and leads tours about natural dyes and is sought after as a speaker about the status of natural dyes in global textile production.
Kathy has been featured in many media outlets and podcasts including The Guardian, Conscious Chatter, The Good Dirt, Weave (from Gist Yarn) and Heritage Radio Network’s Meat and Three podcast. Botanical Colors’ vibrant Instagram account showcases the beauty of their natural dyes and the people who make and use them.
Patient Financing Puts the Business First
The Fibers Fund loan is structured as a low-interest, patient five-year loan to help Botanical Colors recapitalize its balance sheet and free up working capital. In background interviews for the Fibers Fund, natural fiber and textile businesses across the U.S. described their difficulties in accessing low-cost capital–many agricultural funds and programs do not include fiber producers, and other lender types are unfamiliar with this sector. Small businesses like Botanical Colors can end up reliant on high-interest debt that cuts into working capital and their ability to reinvest in this business.
In contrast, the Fibers Fund loan is structured with borrower-centric terms to allow Botanical Colors to invest in new product lines, continue improving cash flow, and fully realize the revenue potential and community benefits of their new, larger Seattle dyehouse and studio. Botanical Colors’s growth will in turn allow them to serve more retail and brand customers, increase their sourcing from U.S. dye farmers, and expand their role as a critical node in the U.S. natural fiber and textile supply network.
Building on a Trusted Partnership
According to Kathy Hattori, Founder and President of Botanical Colors, “This loan from the Fibers Fund will allow us to focus on our core business and mission, which is to provide natural dye solutions from the artisan to the factory. We were so honored to work with the Fibers Fund from its earliest days, and immensely grateful for the trust and support that they’ve showed us.”
“The Fibers Fund is delighted to build on our longstanding partnership with Botanical Colors through this new loan,” added Sarah Kelley, Managing Director of the Fibers Fund. “Kathy was among the key interviewees and case studies who helped us shape the vision for the Fund. Since then we’ve had the opportunity to work in partnership with Botanical Colors through our integrated capital model, and we’ve built deep trust in their consistent revenue performance, track record in meeting financial obligations, and leadership position in the natural dye field. We’re honored to play a role in helping Botanical Colors enhance their business stability and community impact.”
Implementing Partners
This new loan will be serviced through the Fibers Fund’s partnership with Broadstreet Impact, an impact financial services company that offers both fund management and fund administration services. As part of its transition to an independent structure, the Fibers Fund selected Broadstreet, a trusted partner for dozens of impact funds, to take on the administration of its incoming investments and outgoing loans. The Fibers Fund also continues its valued partnership with Impact Charitable, which houses a special purpose fund that allows the Fibers Fund to take in and deploy philanthropic capital as a key component of its integrated capital model. The Fund also maintains close ties with its founding partners, Sustainable Agriculture and Food Systems Funders and Fibershed.
Opportunities for Funders and Investors
Support for the Fibers Fund and the loan to Botanical Colors is provided by a network of funders and investors, including philanthropies, donor-advised funds, family offices, and impact-focused investors. The Fund welcomes inquiries from donors and accredited investors interested in catalyzing further impact for fiber entrepreneurs across urban and rural areas. Learn more about the Fund’s work, team, portfolio, and opportunities to invest or donate at fibersfund.com and contact us at [email protected].
Contact Us
For more information, contact the following:
Fibers Fund: Sarah Kelley, Managing Director, [email protected]
Botanical Colors: Kathy Hattori, Founder and President, [email protected]
Cara Piazza, Creative Director, [email protected]