§ 374h. Loan eligibility standards
A farmer, forest products business, or a limited liability company, partnership, corporation,
or other business entity with a minimum 20 percent ownership of which is vested in
one or more farmers, forest products businesses, or a nonprofit corporation, shall
be eligible to apply for a farm ownership or operating loan that shall be intended
to expand the agricultural economy or forest economy of the State, provided the applicant
is:
(1) an owner, prospective purchaser, or lessee of agricultural land in the State or of
depreciable machinery, equipment, or livestock to be used in the State;
(2) a person of sufficient education, training, or experience in the operation and management
of an agricultural facility or farm operation or forest products business of the type
for which the applicant requests the loan;
(3) an operator or proposed operator of an agricultural facility, farm operation, or forest
products business for whom the loan reduces investment costs to an extent that offers
the applicant a reasonable chance to succeed in the operation and management of an
agricultural facility or farm operation;
(4) a creditworthy person under such standards as the corporation may establish;
(5) able to provide and maintain adequate security for the loan by a mortgage on real
property or a security agreement and perfected financing statement on personal property;
(6) able to demonstrate that the applicant is responsible and able to manage responsibilities
as owner or operator of the farm operation, agricultural facility, or forest products
business;
(7) able to demonstrate that the applicant has made adequate provision for insurance protection
of the mortgaged or secured property while the loan is outstanding;
(8) a person who possesses the legal capacity to incur loan obligations;
(9) in compliance with such other reasonable eligibility standards as the corporation
may establish;
(10) able to demonstrate that the project plans comply with all regulations of the municipality
where it is to be located and of the State of Vermont;
(11) able to demonstrate that the making of the loan will be of public use and benefit;
(12) able to demonstrate that the proposed loan will be adequately secured by a mortgage
on real property or by a security agreement on personal property; and
(13) there will be sufficient projected cash flow to service a reasonable level of debt,
including the loan or loans, being considered by the corporation. (Added 1999, No. 25, § 1; amended 2003, No. 67, § 7, eff. June 16, 2003; 2015, No. 157 (Adj. Sess.), § A.6, eff. June 2, 2016; 2023, No. 141 (Adj. Sess.), § 19, eff. July 1, 2024.)