VEDA Loan Program for Forest Products Businesses

VEDA created special loan products with subsidized interest rates to meet the working-capital and capital-asset financing needs of Vermont forestry and forest-products businesses, with even deeper discounts for the purchase or refinancing of certain low-impact logging equipment. Administered through the Vermont Agricultural Credit Corporation (VACC).

Businesses in the forest economy, including foresters, loggers, log truckers, biomass producers, sawmills, firewood producers, and wood-product manufacturers, 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. Purposes: capital assets (vehicles, machinery, equipment such as log trucks, excavators, feller bunchers, wood processors), operating expenses, seasonal working capital, debt refinancing, and qualifying low-impact logging equipment.

Maximum loan is the lesser of 90% of the value of the securing assets or $500,000. Interest is VEDA's fixed or variable Agricultural Loan Rate minus 1% for the first five years, then VEDA's prevailing variable rate. Terms are based on the useful life of assets (typically up to 10 years for equipment, up to 5 years for working-capital lines). Loans are secured by business/personal assets and guaranteed by any owner of 20% or more. Low-impact logging equipment (with LEAP or Master Logger certification) may qualify for up to an $800,000 loan at 2.5% interest, supported by the Clean Water Fund. A commitment fee of 0.5% ($3,500 maximum) applies.

Discuss your needs with a VEDA lender before applying (802-828-5627 or info@veda.org). Download the Agricultural and Forestry Loan Application or obtain it from VEDA's office.