The Brownfields Revitalization Fund (BRF) was established in Vermont statute as part of the state’s voluntary contaminated properties clean-up program, known as the Redevelopment of Contaminated Properties Program (RCPP). The BRF utilizes the expertise of two State agencies and VEDA:
- The Agency of Commerce and Community Development (ACCD) administers the BRF;
- The Agency of Natural Resources (ANR) is responsible for overseeing site management and approving redevelopment work plans; and
- The Vermont Economic Development Authority (VEDA) is authorized to use the funds in the BRF to make loans to eligible and qualified applicants.
- Initial application must be made to ANR to determine eligibility under the RCPP. If determined to be eligible by ANR, the applicant must participate in the RCPP program in order to qualify for a BRF loan. If ineligible under the RCPP, an applicant may submit a request for eligibility based on applicable provisions of the BRF statute;
- Prior to receiving funding, applicants must receive approval of their work plan by ANR; and
- Eligible borrowers can be for-profit, not-for-profit and municipal entities that own, control or otherwise have interest in properties that meet the Environmental Protection Agency (EPA) definition of Brownfields, and who are committed to reclaim those properties.
- Sites must be vacant, abandoned, substantially underutilized or to be acquired by a municipality; and
- ACCD and ANR currently maintain a priority list of sites that are under active consideration for reuse. Loans may be made only for sites that are on that priority list and for projects that demonstrate remediation will reduce threats to public health, provide an appropriate return on public investment and offer significant development opportunities.
Use of Proceeds
- Redevelop Brownfields sites contaminated by, or perceived to be contaminated by, hazardous substances and/or petroleum; and
- The main focus of the BRF will be on site clean-up, but in some instances, funds may be used to perform site assessment or characterization.
- The maximum Brownfields Revitalization Fund Loan Program loan will depend on the amount of loan funds available when an application is received; these funds may be offered on a subordinate basis and/or combined with other sources of funding to pay project costs;
- Loan terms will be determined on a case-by-case basis based upon financial analysis of the borrower and the project;
- The interest rate is negotiable; and
- Loan repayment will generally be required within fifteen (15) years. Payments may be deferred temporarily until a project begins to generate cash flow, although repayment must commence no later than one (1) year after the project is completed.
- $50 credit report fee (if applicable);
- $18 flood insurance certificate (if applicable);
- Document recording/discharge fees; and
- No application fee.
- Applicant submits a request for determination of eligibility or applies to ANR under the Redevelopment of Contaminated Properties Program (RCPP);
- Applicant submits an appropriate work plan to ANR;
- Applicant submits a Brownfields Revitalization Fund Part I Application to ACCD to be evaluated;
- ACCD, in consultation with ANR, determines eligibility for funding;
- Upon approval by ACCD and ANR, applicant submits the approved Part I and the Part II application to VEDA;
- VEDA reviews the application based on the applicant’s creditworthiness and ability to repay the loan and makes financing recommendations including rate, term, and conditions, to ACCD and ANR; and
- ACCD, in consultation with ANR, reviews VEDA’s recommendation and determines whether or not the loan will be made.