Financing for Vermont Businesses and Farms

VACC – Vermont Agricultural Credit Corporation Loan Program

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.

Eligibility

A farmer or business entity, the majority of which is owned by farmers, provided the applicant is:

  • A Vermont resident who is engaged in agriculture or forest products businesses within the state and will help expand the agricultural economy of the state;
  • An operator or proposed operator of an agricultural or forest-based products business;
  • A current or prospective owner/prospective purchaser or lessee of agricultural land in the state or of depreciable machinery, equipment and/or livestock in Vermont.

Loan Purposes:

VACC provides two types of loans:

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;
  • Refinance indebtedness incurred for operating loan purposes;
  • Finance lines of credit.

Farm Loan Rates and Terms

  • 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.

Fees

  • 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;
  • Appraisal reimbursement unless loan is denied;
  • Document recording/discharge fees;
  • No application fee.

Application Process