VACC – Vermont Agricultural Credit Corporation
VACC, a program of VEDA, is a nonprofit corporation which provides credit to Vermont farmers, agricultural facilities, forestry and forest product-based businesses. Farm loans are available to strengthen existing farm operations, encourage diversification, support beginning farmers, and to encourage marketing and processing of Vermont agricultural and forestry products. “Farm Operations” means the cultivation of land or other uses of land for the production of (among other things) food, orchard products, maple syrup or forest crops. Also included is the raising, boarding and training of equines and the raising of livestock.
- Vermont residents who will be engaged in agriculture within the state and are able to demonstrate their operation can generate sufficient cash flow to service debt;
- A current or prospective owner/operator of agricultural land, equipment and/or livestock in Vermont;
- Must be sufficiently educated, trained or experienced in the operation and management of the type of agricultural operation for which financing is sought.
Farm Ownership Loans may be used to:
- Acquire or enlarge a farm, agricultural facility or forest products business;
- Make capital improvements, including construction, purchase and improvement of buildings;
- Promote soil and water conservation and protection;
- Refinance indebtedness incurred for farm/business purposes.
Farm Operating Loans may be used to:
- Purchase livestock, machinery and equipment, or fixtures;
- Pay annual operating expenses of a farm operation, forest products business or agricultural facility;
- Pay loan closing costs;
- Refinance indebtedness incurred for operating loan purposes;
- Finance lines of credit.
Farm Loan Rates and Terms
- As of July 1, 2014, maximum aggregate loans outstanding to any borrower at any time may not exceed $2 million. This limit is subject to adjustment;
- Eligible VACC loans may be guaranteed by the USDA Farm Service Agency;
- Attractive variable or fixed interest rates based on VACC’s cost of funding; ( see Current VACC Rates; )
- Consistent with conventional lending practices, VACC secures its loans with mortgages and/or security interest in available collateral;
- Terms will be matched to the life of the asset being financed. Maximum term is 20 years.
- One-time .5% commitment fee at closing (minimum fee $250; maximum fee $2,500; this does not include the FSA guarantee fee);
- $25 credit report fee;
- $18 flood insurance certification (if required);
- Appraisal reimbursement unless loan is denied;
- Document recording/discharge fees;
- No application fee.
- Loans up to $350,000 may be approved internally by VACC staff;
- Loans exceeding $350,000 are presented to the VACC Board monthly for consideration;
- Applicants are advised to discuss their proposed project with VACC staff prior to submitting the application;
- Applications may be downloaded or obtained from the VACC office.
- Note: Loan terms, rates, fees and conditions may vary from those shown above if the loan is enrolled in a Small Business Administration guaranteed loan program.