Forestry Loans
VEDA recognizes that Vermont forestry and forest products-based businesses are a vital source of innovation, employment, and economic growth in Vermont and have faced challenges related to unpredictable weather events and changing markets. To help these businesses, VEDA created special loan products with subsidized interest rates to meet the working capital and capital-asset financing needs of businesses in the forest products sector with even deeper discounts available for certain low-impact logging equipment*.
Please note, this page does not include all available financing options from VEDA for Vermont’s forestry sector. For more information, please explore VEDA’s traditional agricultural loan program which also serves forestry and forest products businesses.
Eligibility
- Businesses in the forest economy, including foresters, loggers, log truckers, biomass producers, sawmills, firewood producers and wood product manufacturers.
- Businesses (sole proprietorships, partnerships, corporations, LLC’s) in good standing with all state agencies.
- Loan proceeds must be used for projects located in Vermont and use forest products at least partially produced in Vermont.
Loan Purposes:
- Purchase of capital assets such as vehicles, machinery & equipment, including but not limited to log trucks, excavators, feller bunchers and wood processors.
- Purchase of low impact logging equipment*, machinery for implementing Acceptable Management Practices (AMPs), and equipment, supplies and/or management costs that support soil and water conservation, such as flotation wheels/tires.
- Pay operating expenses.
- Support seasonal working capital needs.
- Refinance existing debt at more affordable rates and/or terms.
Loan Amounts, Rates, and Terms
- The maximum loan size will be based on repayment ability, with the maximum not to exceed the lesser of 90% of the value of the assets securing the loan or $500,000.
- Interest rates will be based on VEDA’s fixed or variable Agricultural Loan Rates, as adjusted from time to time, minus 2% for the first five years of the loan. After the initial 5-year period, the rate will adjust to VEDA’s prevailing variable rate.
- The term of loan is based on the useful life of assets being financed, typically up to 10 years for equipment and up to 5 years for working capital lines of credit.
- Consistent with conventional lending practices, loans will be secured by business and/or personal assets.
- Loans will be guaranteed by any entity or individual who owns or controls 20% or more of the business.
*Low-Impact Logging Equipment
In addition to the loan described above, low-impact logging equipment that protects soil, reduces erosion, and helps keep water clean may be eligible for a loan with an even lower interest rate. This additional discount is possible thanks to support from the Clean Water Fund overseen by the Vermont Department of Forests, Parks, and Recreation (FPR).
Contingent upon approval from VEDA and FPR, qualifying low-impact logging equipment could be eligible for up to an $800,000 loan with an interest rate between 2.5% and 3%.
Application Process
- Applicants are advised to discuss their loan needs with a VEDA lender prior to submitting the application. Please contact us at 802-828-JOBS (5627) or info@veda.org.
- Applications may be downloaded or obtained from VEDA's office.
