VACC Eligibility
- Vermont residents who are or will be engaged in agriculture within the state; and
- A current or prospective owner/operator of agricultural land or equipment and/or livestock in the state.
Loan Purposes Farm Ownership Loan:
- To acquire or enlarge a farm or agricultural facility;
- To make capital improvements, including construction, purchase and improvement of farm and agricultural facility buildings;
- To promote soil and water conservation and protection;
- To refinance indebtedness incurred for farm ownership; and
- VEDA’s interest rate will be based on VEDA’s Base Rate Index, as adjusted from time to time, plus 3%.
Operating Loan:
- To purchase livestock, farm equipment, or fixtures;
- To pay annual operating expenses of a farm operation or agricultural facility; and
- To pay loan closing costs and to refinance indebtedness incurred for operating loan purposes.
Loan Rates and Terms
- Maximum aggregate loan size is set at FSA limitation;
- Attractive variable or fixed interest rates based on VACC’s cost of funding; see Current VACC Rates;
- Most VACC loans will be guaranteed by the USDA Farm Service Agency; and
- 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 ($250 minimum; $2,500 maximum);
- FSA fee for guaranteed loans; and
- Appraisal fee, depending on scope of work.
VACC Application Process
- Loans up to $350,000 may be approved internally by VEDA staff;
- Loans exceeding $350,000 are presented to the VEDA Board monthly for consideration;
- Applicants are advised to discuss their proposed project with VACC Staff prior to submitting the application; and
- Applications may be downloaded or obtained from the VACC office.
