Vermont Economic Development Authority outlines agricultural lending tools, seeks $1 million interest-subsidy in governor's budget

Cassie Paulimas, chief executive officer of the Vermont Economic Development Authority (VEDA), told the Senate Agriculture Committee on Jan. 17 that VEDA devotes roughly one-third of its loan portfolio to agriculture and is asking the legislature to consider a $1,000,000 appropriation to continue interest-subsidy programs for farm borrowers.

The request is intended to replace or supplement federal State Small Business Credit Initiative (SSBCI) funds that VEDA has used to subsidize interest rates on loans to farms. "Vermont Economic Development Authority is an instrumentality of the state. We're created under state statute in Title 10, Chapter 12," Paulimas said, describing VEDA's legal status and its agricultural-lending work under the Vermont Agricultural Credit Corporation entity. She said SSBCI money allowed VEDA to subsidize borrower rates and that the agency has largely deployed its SSBCI tranches.

Why it matters: Committee members and VEDA staff framed the subsidy as a tool to reduce borrowing costs for small and medium-sized farms…