The Carrot Project Agriculture Fund is a partnership between The Carrot Project and Vermont Community Loan Fund, designed to meet the needs of producers and processors that serve markets in Vermont or nearby states.

Loan Terms

• Loan amounts available from $5,000 to $35,000
• The interest rate is 7%
• Flexible loan terms from 1-6 years. There is no penalty for early payment.
• Funds may be used for opperating or capital expenses.
•  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.

Application Deadline: Always the 1st of the month or the next business day if the 1st falls on a weekend or holiday. 

Download the Vermont Preapplication

You may submit your financials in any format, but if you would prefer a template for your financial statements, you may download one below.

Eligible Borrowers

To be considered for a loan, farms and food system enterprises 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.

Food System Enterprises

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.

Farm Financial Templates - Free Downloads

We've developed these free templates specifically for small farm financial planning. Use them for general or annual financial planning, to accompany a business plan, or to meet the requirements for historical and projected "Income Statements" and "Cash Flow Statements" as listed on The Carrot Project's loan application checklist. The monthly and yearly templates can be used together or independently; the monthly templates are most useful for looking at the past or future 12 months of your business in detail, while the yearly templates are most useful for summarizing your cash flow projections 2 and 3 years into the past or future. 

Yearly Financial Statements Template (Download .xlsx) 

Monthly Financial Statements Template (Download .xlsx) 

Sample Business Plan and Financial Statements (Download .pdf)

Borrower's Financial Glossary (Download .pdf)