Revolving loan fund helps Vermont start-up farmers and food producers
Vermont Business Magazine The Vermont Farm Fund, a non-profit revolving loan fund for local farmers and food producers, has launched a new loan program for farmers and food start-ups.
The VAW New Producer Loan will provide access to hassle-free friendly term loans of up to $ 20,000 at a low interest rate of 3%. True revolving credit fund, as the community of beneficiaries repays their loans, the funds are replenished for the next cycle of borrowers.
Launched in 2011 in response to Tropical Storm Irene, the Vermont Farm Fund has reached over $ 750,000 and provided over $ 2 million in emergency and business start-up loans during that time.
The New Producer Loan was developed in response to growing demand from farmers who were starting new businesses or moving to new land and needed capital to finance improvements in infrastructure or equipment to start up and operate.
For the past three years, the VFF has partnered with the Vermont Land Trust’s Farmland Access Program to help farmers in this program access capital, and the launch of the New Producer Loan will open up access for farmers. and food producers across the state.
New Producer Loans are intended exclusively for registered agriculture and food related businesses located in Vermont that produce or source ingredients for their value-added food processing from local farms / producers (defined as Vermont plus 30 miles).
Examples of a New Producer Loan include infrastructure improvements to convert an existing farm to new crops or products, the purchase of food processing equipment, or the launch of a website to promote a business. new CSA.
Applicants are required to provide a written business plan prepared with outside support from a technical assistance provider that includes at least two years of financial projections.
Applications are reviewed and processed within 10 business days, with most loan funds released to approved recipients within 14 business days.
The Vermont Farm Fund is a program of the Center for an Agricultural Economy, a 501 (c) 3 nonprofit organization based in northeast Vermont.
Through programs that support access to food, viable farms and functioning landscapes, CAE builds a healthy and regenerating food system by promoting local foods and the people who produce them.
Source: Hardwick, Vermont: September 23, 2021 – The Vermont Farm Fund https://www.vtfarmfund.org/