The VRV financing safeguards Black River Produce’s on-going financial stability. By preserving critical working capital and financial ratios the company is well positioned to take on future developments and expansions. This project brings up to 65 jobs into the low-income community. Ancillary job creation, retention, and wealth generation on farms through increased local meat production is also anticipated. As a further benefit to the community, Black River Produce will share a percentage of its net profits with producers for infrastructure improvement or producer scale up; scholarship awards for Vermont Technical College, Howard Dean Educational Center and Hannaford Career Center students; on-site internships; the Vermont Food Bank and other community organizations.

Gap and Investment

Financing from Vermont Rural Ventures enabled this project to occur after discovering that the costs to renovate and equip the facility far exceed the $2.5 million appraised value. Bank financing was restricted to lending at 60% of the value of the project, which left Black River Produce with an $8 million gap. VRV’s investment brought in over $2.9 million of equity to fill the gap along with People’s United Bank, Vermont Economic Development Authority and owner capital.

Project TypeBusiness Financing
Project SponsorBlack River Produce
NMTC Investment$9.5 million
Short descriptionMeat and seafood processing and storage facility retrofit and fit up
Team: BusinessBlack River Produce
Team: LegalNolan Sheehan Patten LLPDowns Rachlin Martin PLLCNixon Peabody LLPDinse Knapp & McAndrew
Team: AccountingCohnReznick LLP
Team: ArchitectDavid Laurin, AIA
Team: ContractorAll Seasons Construction Corporation
Financing PartnersPeople’s United BankVermont Economic Development Authority