The Carrot Project is partnering with the Vermont Community Loan Fund to implement a farm business loan program for small and midsized farms and farm-related businesses that use sustainable or organic practices and serve markets in Vermont or nearby states. Funds can be used for working capital, capital needs such as equipment or buildings, or other improvements for production or value-added enterprises. On-farm, value-added enterprises are given preference, but off-farm enterprises are also eligible, providing inputs are sourced locally. Loan amounts of up to $35,000, for terms of 1–6 years, are available.

Next Application Deadline(s): The first of the month or the next business day if it falls on a weekend or holiday. 

Download the Vermont Prequalification Questionnaire

Download a sample business plan and financials

Download a glossary of financial terms used in the Vermont Application

Loan Terms

• Loan amounts from $5,000 to $35,000
• The interest rate is 7%
• Loan Terms from 1-6 years. There is no penalty for early payment.
•  If the loan is used for fixed assets, inventory or receivables, the purchased items will be used as collateral to secure the loan. VCLF may also require security in the form of personal guarantees, collateral on personal or farm assets, or a co-signer.

Eligible Borrowers

To be considered for a loan, farms and farm-related businesses must meet the following qualifications:

Farms

• Annual gross revenue of $499,999 or less
• Ownership:  farm property must be owned or leased by the applicant; leases should be in effect for at least the payment period of the loan. 
• Preference will be given to family farms as defined by the USDA’s Economic Research Service.
• Applicants must be engaged in cultivation of farm, forest, or aquatic products.

Farm Related Businesses

Business involved in processing, storage or distribution of agricultural products are eligible if: 

• The business has less than 50 employees
• The source of the ingredients or materials from which the product is produced is primarily within Vermont and/or nearby states (although the points of sale are not required to be within this region)
• Businesses whose primary purpose is to process, add value to, store, or act as distributors for local agricultural products are eligible. For example: on-farm farm stands, cheese-makers, butcher shops, produce delivery companies and agricultural co-ops, ARE eligible when adding value. 
• Agricultural industry support services such as veterinarians, feed & fertilizer stores, and retail outlets are not eligible. 

Eligible Uses of Loan 

• Capital investments and expenses that improve efficiency and/or quality, and/or expand farm production and sales.
• Repairs necessary to maintain farm operations.
• Short-term operating needs, such as inventory, supplies, and/or labor for expansion.
• Emergency funds to deal with business interruptions due to fire, natural disasters, or other unforeseeable events.

If any of the following apply to your situation, this program is not suitable for you at this time.

• You are delinquent on any federal debt or child support.
• You would like to use the loan to refinance debt.
• You would like a line of credit.

Fees

• Application fee of $50.00.
• Administration fee of $50.00 due at closing.
• Expenses incurred for the recording of collateral documentation and anticipated discharges of such documentation, due at closing.
  

If you have questions about how to complete the application or application process, or would like someone to sit down and walk you through the application, please contact Benneth Phelps at 413.650.6151 or bphelps(at)thecarrotproject.org.