Get Growing! HVADC’s Loan Process Guide for Agribusiness Funding

If you’re a farmer or the owner of an agriculture-based business and you’re ready to take your agribusiness to the next level, Hudson Valley Agribusiness Development Corporation (HVADC) has the funding you need. HVADC’s Agribusiness Loan Fund supports agricultural businesses that may not meet traditional business-loan criteria, with customized financing solutions to support your plans and goals for long-term success.

In this step-by-step guide, our goal is to help you understand what to expect as you go through the loan process, from preparing your application to managing your loan. With this insight, you’ll be ready to move forward on your path to financing success.

Why choose HVADC for your agribusiness or farm loan?

Not all lenders know the challenges that agribusinesses face–but HVADC does. As a non-profit lender dedicated to supporting local agriculture and responsible land stewardship, HVADC helps farmers and food-related businesses through guidance, expertise, and local support, as well as by creating customized ag loan and farm loan options tailored to your agribusiness.

See if you’re eligible for HVADC financing

The first step in any loan process is to review the lender’s basic eligibility criteria. For financing through the HVADC Agribusiness Loan Fund, this includes farms and agricultural businesses that:

• Seek loans from $50,000 to $1,000,000+ for working capital, equipment, inventory, technology or process upgrades, leasehold improvements, and the purchase of real estate for your agribusiness.

• Need financing to expand operations, markets, or value-added products or services, or to build profitability through process efficiencies, energy-efficiency improvements, and more.

• Have received a grant award and need bridge financing to complete the terms of the award so that grant funds can be released.

• Are owned by entrepreneurs of all backgrounds including women, veterans, LGBTQ+, BIPOC, and people from lower-income backgrounds or communities.

• Have three years of business tax returns or, for startups and early-stage businesses, a mix of business and/or personal tax returns for up to three years and financial projections for the business.

• HVADC provides agricultural-enterprise support services for farms and food producers across eight counties in New York State’s Hudson Valley region.


If you have a small agribusiness in our service area–in and around New York’s Hudson Valley and Capital regions–that doesn’t meet these criteria or you need financing in an amount less than $50,000, it’s still worthwhile to have a conversation with HVADC. As a community development financial institution (CDFI), HVADC has flexible eligibility and approval criteria and may be able to help. If HVADC isn’t able to lend to you directly, we can recommend other CDFIs and lenders who may be better suited to your business and needs.

Step 1: Prepare your documents

Once you’ve determined that your business is eligible to apply for financing through HVADC, the key to a smooth and stress-free loan process is to prepare all of the required documents before you submit your application. Use this checklist as a guide:

• A completed HVADC loan application form with your signature

• Your personal financial statement

• Three years of federal tax returns (personal and business). If your business has less than three years of financial history, HVADC will advise you on what you need to provide.

• Current year-to-date financial statements for your business (including an income statement and balance sheet)

• A list of your business debts including original amounts, current balances, monthly payments, and when they're due

• If applicable, reports showing what you're owed (accounts receivable, or AR) and what you owe others (accounts payable, or AP)

• A project narrative that explains how you’ll use the funds, the specific dollar amount you're requesting, any funds you’re contributing (a specific amount may be required as owner equity), and an explanation of how the funding will improve efficiency or increase revenue. You’ll find an area for this explanation within the HVADC loan application

• Financial projections for the business for up to three years

• A signed credit-release form

Be sure that your documents are accurate and up-to-date. If you use an accountant or bookkeeper, contact them as soon as you decide to move forward and let them know all of the documentation that you’ll need. This is especially important during tax season when financial professionals are busy. Also, your HVADC loan representative may request additional information for your application, including a business plan or summary.

Step 2: The application journey

Just as every agribusiness is different, the loan process will vary based on your business, the loan amount and use, and how long it takes for a completed application package to be submitted. Once the completed application package is received by HVADC, the remainder of the process typically takes about 4-7 weeks.

Application submission: Once you have everything you need for your application, you’ll submit your application package through HVADC's secure online system.

Application review and underwriting: Your HVADC representative will stay in touch with you as your application package is reviewed during a process called ‘underwriting.’ During this time, HVADC will review all of the documents you submitted and assess your eligibility, your business’s financial health, and how the loan will be used. If your application request does not meet the criteria for the HVADC Agribusiness Loan Fund, we may refer it to a partner organization that may better assist you.

Additional documentation requests: During the review process, you may be asked for additional information. If so, it’s important to respond quickly—otherwise, it can delay your application decision.

Keep in mind that as HVADC reviews your application, there are some specific points that will be considered. These include a clear business plan that’s updated to reflect your loan request and how it will improve your business, as well as financial projections that show the impact of the loan on your business’s ability to generate revenue and make a profit. Be sure to include your plans about how this boost to your business will help you repay the loan.

Step 3: The loan decision

After your application is reviewed, it will either be approved for a loan or declined. If it’s declined, don’t be discouraged: Talk to your HVADC representative to learn more about why and how to address any issues as you move forward. Often, the reason is something that you can correct and when you do, you can reapply.

When your loan is approved, you’ll receive a loan package that details:

• The loan amount, which may be what you requested or less, depending on what the underwriting team determined would meet your needs and repayment ability.

• The interest rate at the time of closing. Keep in mind that HVADC loans include variable interest rates tied to the prime rate. It’s adjusted quarterly, so your interest rate and monthly payment may vary over time. It’s worth noting that HVADC offers competitive rates that are generally lower for small agribusinesses than those from traditional lenders, like banks.

• Specific uses for the loan, if applicable, such as equipment purchases that may be used as collateral for the loan.

• The repayment schedule, which includes a repayment plan that’s customized to meet your business’s cash flow and needs.

• The loan term, which is the length of time over which you’ll make repayments, such as five years or ten years.

• Any fees that will be included in the loan and/or that you’ll be required to pay. For HVADC loans, this includes a $250 application fee and an origination fee totaling 1% of the loan request, which are due at loan closing.

Step 4: Receiving your loan funds

After approval, HVADC will work with you to complete any final paperwork to close your loan and provide you with the funds. In most cases, loan funds will be deposited into your business bank account the day of closing.

Step 5: Managing your HVADC loan

Once you receive your loan funds, you can use them as agreed to build your business. You’ll also be required to make on-time payments each month for the full amount due, according to your loan agreement. Every HVADC loan recipient is also required to submit year-end financials, tax returns and employment figures for June-end and end-or-year.

It’s important to know that if anything happens to your business that would make it hard or impossible to repay your loan on time and for the full amount due each month, contact HVADC immediately. When your HVADC team knows about your situation, they can work with you on a solution.

And for all borrowers, maintaining good communication with HVADC is important—while repaying your loan as required will help you build a good business credit history, building a good relationship with HVADC better positions your agribusiness for future financing, too.

HVADC helps at every point in the agribusiness loan process

HVADC helps agribusinesses throughout the Hudson Valley to secure farm loans and grants that set you up for success and help your agricultural business to thrive.

Whether you’re ready to apply or are simply exploring potential financing options, contact HVADC to learn more.