Farm Operating Loan Program
Program Purpose & Use of Loan Proceeds
- The purpose of this program is to provide cash flow relief for cow dairy farmers due to the industry-wide low milk price environment.
- Eligible use of loan proceeds includes but is not limited to paying for operating needs and refinancing debt.
- Any cow dairy farmer that meets the eligibility for financial assistance under the existing programs of the Vermont Agricultural Credit Corporation (VACC).
Loan Terms and Borrowing Limitations:
- Maximum loan size: $150,000.
- Term & Amortization: loan term generally up to 5 years, fully amortizing. Up to 6 months interest only may be available on a case-by-case basis.
- Interest Rate – variable rate based on VACC Prime - 1.5% for two years (currently 4.5%); thereafter going to VACC Prime (currently 6%).
Farm Service Agency (FSA) Guarantees:
- VACC may request FSA guarantees on a case-by-case basis.
- Commitment Fee of 0.5%.
- Reimbursement of out of pocket expenses incurred by VACC.
- Fees can be rolled into the loan amount.
- FSA guarantee fee will be charged if applicable.
- Applications will be available online, here, from the VEDA/VACC offices, or by calling VACC at (802) 828-5467 or (866)-828-3276
- Loans will be processed by VACC using a streamlined underwriting and credit review process.
- Loans will be closed in an expedited manner.