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VACC - Vermont Agricultural Credit CorporationVACC is a nonprofit corporation which provides credit to farmers and agricultural facilities who are not having their financing needs fully met by conventional agricultural credit sources. Loans are available from VACC to strengthen existing farm operations, encourage diversification, support beginning farmers and to encourage marketing and processing of Vermont agricultural products.
Eligibility - Vermont residents who will be engaged in agriculture within the state and are able to demonstrate that their operation can generate sufficient cash flow to service debt;
- A current or prospective owner/operator of agricultural land or equipment and/or livestock in the state.
Loan Purposes
Farm Ownership:
- 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.
Operating Loan:
- To purchase livestock, farm equipment, or fixtures;
- To pay annual operating expenses of a farm operation or agricultural facility;
- To pay loan closing costs and to refinance indebtedness incurred for operating loan purposes.
Loan Rates and Terms
- Maximum aggregate loan size is $1,112,000 per borrower;
- Attractive variable or fixed interest rates based on VACC's cost of funding;
- Most VACC loans will be guaranteed by the USDA Farm Service Agency, allowing VACC to borrow at favorable rates and pass these savings on to its borrowers. Rates may also be obtained by calling the VACC office;
- 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 may be charged for guaranteed loans;
- Appraisal fee, depending on scope of work.
Application Process
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