Green Mountain Growers Loan Fund

The Green Mountain Growers Revolving Loan Fund was jointly established in 1994 by NOFA-VT and Chittenden Bank's Socially Responsible Banking Fund (formally Vermont National Bank). NOFA-VT manages the $90,000 fund. The motivation to create the fund arose from an increasing number of loan requests from small scale organic farmers; farmers who lack credit history and therefore could not secure conventional loans; and the need for short-term working capital.

In 2007 funded through Chittenden Bank, NOFA Vermont, in conjunction with its Technical Assistance Program for dairy farmers, established a second loan fund program, the NOFA Energy Loan Fund. Through this pilot program loans are available at 4% interest specifically for energy efficient technologies. Currently, applicants may apply for a 5 year loan of $3,000 to $4,000 for variable speed pumps. In the future, the program may expand to include wind technology. The applicant process and paperwork requirements for the Energy Loan Fund are the same as the Green Mountain Growers Revolving Loan Fund.

Process and Timeline:

Completed applications are accepted on a rolling basis. Technical assistance is available from the NOFA-VT office for applicants who need help developing a business plan or in completing their loan application. Contact the office at (802) 434-4122 or info@nofavt.org.

Applications are reviewed by a peer loan fund advisory board. An initial screening will take place and applicants who are declined at this point will be notified. The applicants who are still in the selection pool may get a site visit by the loan fund officer after an initial screening is completed. Final decisions will be made by the loan fund advisory board. The loan fund will conduct a credit history check at its own expense.

Here are the forms and applications you'll need:

General Information for borrowers:

Eligibility

Loans are available to:

farmers within Vermont
farmers that farm with sustainable agricultural practices
organic farmers
farmers that are interested in making the transition to sustainable management practices
farmers that are interested in making the transition to organic management

Permitted Use of Funds

Equipment
Working capital
Improvement of business management, i.e. market research, computer software and training, seasonal labor

Loan Amount

$2,000 - $15,000

Rate

Fixed rate of 7.5% as of April 2006. Terms and disclosures will be detailed in the commitment letter.

Terms

Equipment Loans - 1 to 5 years
Working capital - 1 to 12 months
Business management - 1 to 12 months

Note: There is no pre-payment penalty for the payback of loans.

Collateral

Loans under $2500 will be unsecured
Loans of $2500 or higher must be secured with a minimum loan to value ratio of 90%. Value of the collateral will be assured by appraisal by the loan officer or an independent third party.

Equity Requirements

A minimum of 10% equity in the project is required on loans of $2500 or greater.