About this programme
The Vermont Community Loan Fund (VCLF) is a nonprofit community development financial institution that lends to Vermont businesses, affordable housing projects, community facilities, and early childhood education programs when conventional banks turn them down. Its own description of its purpose: "Not every Vermont business can get fair financing from a conventional bank, and that's exactly who we're here for."
On the business side, VCLF lends across nearly every industry and stage, from start-ups to long-established companies, spanning farming, specialty foods, manufacturing, retail, and services. Rather than a single loan product, the business loan program is really an umbrella over several purpose-specific tracks, each with its own loan size, rate, and eligibility rules: the Sprout Loan, the Food, Farms & Forests Fund, the Justice Forward Fund, the Agritourism Loan, the Career Tech Education Loan, and the Trails Loan.
Applicants who do not fit one of those specific tracks apply through the general business loan process instead, and VCLF's staff say they work case by case to match a borrower with the right product for their situation.
How it works
The Sprout Loan funds early-stage farm, food-processing, and forestry businesses with up to $60,000, at 1% interest for the first two years and a fixed 2% after that, over a 2 to 7 year term. As of this guide's update, VCLF has paused new Sprout Loan applications and expects to reopen the program later in the year.
The Food, Farms & Forests Fund lends to farms, food producers, forestry enterprises, and natural resources organizations at fixed rates starting at 7.75%, over terms from several months to 20 years depending on the project. It carries a $60 application fee, a 1% origination fee, and a $215 documentation fee, though VCLF says origination and closing fees can sometimes be financed into the loan.
The Justice Forward Fund lends $1,000 to $50,000 at a flat 2% annual interest rate, with a single $60 application fee and no other charges, to small business owners who are Black, Indigenous, or otherwise Vermonters of color, provided the business owners' net worth (excluding equity in a primary residence) does not exceed $63,000.
The Agritourism Loan lends up to $50,000 at fixed rates starting at 3%, with terms from several months to 20 years set project by project, to Vermont farmers building or expanding visitor-facing agritourism activities.
The Career Tech Education Loan is the largest of the tracks, lending up to $650,000 at 0% interest over as long as 7 years, with no payments due until the project is complete. It funds construction tied to Vermont's 17 career technical education centers, and partial loan forgiveness is available for student and instructor wages worked outside school hours, and, on affordable housing projects, for funding gaps up to 30% of the loan amount.
The Trails Loan lends $5,000 to $350,000 to a first-time borrower, at rates set individually and currently averaging 7.75%, over terms of 1 to 10 years, to for-profit and nonprofit organizations building outdoor recreation facilities.
Who can apply
Across every track, the common thread is a business that cannot get fair financing at reasonable rates and terms from a conventional bank, spanning start-ups through long-established companies in most industries.
The Sprout Loan, Food, Farms & Forests Fund, and Agritourism Loan are aimed specifically at farms, food producers, and forestry or agritourism operations, several with sustainability, local food access, or community impact criteria attached.
The Justice Forward Fund is restricted to Black, Indigenous, and other Vermonters of color who own small businesses, including sole proprietors, with a $63,000 cap on the business owners' net worth outside home equity.
The Career Tech Education Loan is restricted to Vermont's 17 career technical education centers and their partner organizations, such as housing and community groups, nonprofits, town government, or private businesses, building projects with a real educational role for CTE students.
The Trails Loan is open to for-profit and nonprofit organizations that create outdoor recreation opportunities, including outdoor recreation manufacturers and retailers, with preference for those showing demonstrated or projected growth.
How to apply
- Call VCLF at 802-223-1448 or email admin@vclf.org before applying; staff say a short conversation helps route you to the right loan track.
- Fill out the inquiry form on the Vermont Community Loan Fund website, or the specific application for your track, such as the Justice Forward Fund Loan Application Packet or the Career Tech Education Loan's fillable PDF application.
- Use the Business Resource Center for free advising and technical assistance while preparing the application, covering business planning, financial projections, and loan readiness.
- For the Career Tech Education Loan specifically, start by contacting your local CTE center, then reach program manager Kathleen James at kath@vclf.org or 802-223-4439.
Documents you’ll typically need
- Justice Forward Fund Loan Application Packet
- Personal Financial Statement (PDF or Excel format)
- Career Tech Education Loan overview document and fillable PDF application
Frequently asked
What loan programs sit under VCLF's business loans?
Six purpose-specific tracks: the Sprout Loan for farm, food, and forestry start-ups, the Food, Farms & Forests Fund, the Justice Forward Fund for Vermonters of color, the Agritourism Loan, the Career Tech Education Loan, and the Trails Loan for outdoor recreation, plus a general business loan process for businesses that don't fit those categories.
Is the Sprout Loan currently open?
No. VCLF has paused new Sprout Loan applications as of this guide's update and expects to reopen the program later in the year; it points applicants toward its other loan tracks in the meantime.
What interest rates does VCLF charge?
Rates vary by track: the Justice Forward Fund charges a flat 2%, the Sprout Loan starts at 1% and moves to 2%, the Career Tech Education Loan is 0% interest, and the Food, Farms & Forests Fund, Agritourism Loan, and Trails Loan use fixed rates starting at 7.75%, 3%, and an average of 7.75% respectively.
Who qualifies for the Justice Forward Fund?
Black, Indigenous, and other Vermonters of color who own a small business, including sole proprietors, provided the business owners' net worth outside their primary residence equity is $63,000 or less.
Is there help preparing a loan application?
Yes. The Business Resource Center offers free advising and technical assistance for putting an application together, and continues to support borrowers once a loan is in place.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.