Vermont Farm Fund New Producer Loan

The New Producer Loan program was launched in 2021 to support new farmers and food producers who need funding for infrastructure on new property or equipment for launching a value added food business.

Examples of a New Producer Loan include:

• Infrastructure improvements to convert an existing farm to new crops or products

• Purchase of food processing equipment

• Launching a website to promote a new CSA

New Producer Loans range from $5,000 to $20,000 at 3% amortized interest, and are available to businesses with less than 2 years of operating history. The loan term ranges between 24-60 months, with the option to defer payments for up to a year.

New Producer Loans are exclusively for farm and food-related businesses registered and located in Vermont that either produce or source ingredients for their value added food processing from local farms/producers (Vermont plus 30 miles).

Applicants are required to supply a written business plan prepared with outside support from a technical assistance provider that includes at least two years of financial projections. Local TA providers that can provide no-cost support include: Center for an Agricultural Economy, Farm Viability, Center for Women & Enterprise, Land for Good, UVM Extension, CVOEO, and the Vermont Small Business Development Center. The VFF can help you connect with a business advisor if you are not working with one already. Typically the business planning process can take between 5-15 hours of time working with a business advisor, sometimes more depending on complexity.

Once we receive your application and business plan, loan requests are reviewed and responded to within 10 business days, with most loan funds being granted to approved recipients within 14 business days. 

Prepare the below materials and apply online here.

Application Checklist

1. Completed Application (Either fill them out in advance or complete online as you apply. Can be downloaded here: Word, PDF)

   1. During the application, you will be asked for the business tax ID (if any), as well as the social security numbers of all parties signing the loan. Note that all members of a partnership, as well as any corporate owner/officer with a 20% share or greater in the corporation must be listed on the application.

   2. The application also includes space for a high-level budget of the project you’ll be financing with the loan.

   3. You will also be asked for the contact information for three personal references we can speak to, including one person you have done business with.

2. A completed Financial Projections form (Templates available here: Excel,PDF)

3. Your most recent tax return (Schedule F for farm businesses, or personal return if you are a sole proprietor)

4. Balance Sheet (Optional)

5. Business plan or other supporting documentation (Optional)

• How to Apply