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ACT NO. 25

(H.180)

VEDA Agricultural Lending Program

This act creates the Vermont Agricultural Credit Program to replace two existing programs, the agricultural finance program and the debt stabilization program, which are repealed by the act. Unlike the former programs, the new program is not backed by the full faith and credit of the state.

The act directs the Vermont economic development authority (VEDA) to organize a nonprofit corporation, the Vermont agricultural credit corporation, to administer the program and creates the agricultural credit development fund to be used by the corporation. Two types of loans are authorized by the act, asset acquisition loans and operating loans. The act establishes loan eligibility standards, limits outstanding operating loans to a single borrower to $300,000 and limits the total amount of money loaned to a single borrower to $500,000.

The act also repeals VEDA's tax exemption for real or personal property to which it takes title.

A one-time appropriation of $3,500,000 for the program was included in the Appropriations Act (No. 62).

Effective Date: July 1, 1999