Commercial Financing

Program Title Program Details
Direct Loan Program
  • Loans up to $1.5 Million (or 40% of a project, whichever is less) to finance land & buildings and/or machinery and equipment;
  • Eligible businesses include manufacturing, processing, warehousing, research and development, travel and tourism, information technology, certain energy generation projects, and others as defined in statute;
  • Project must involve private (i.e., bank or credit union) financing for some portion of project;
  • VEDA may also purchase a portion of an eligible loan made by a bank or credit union.
Commercial Energy Loan Program
  • Loans up to $2 Million (or 40% of a project, whichever is less) to finance larger qualifying renewable energy generation and energy efficiency projects;
  • Eligible businesses include all those listed above in the Direct Loan Program, as well as non-profit business entities and municipalities, with the exception of housing-related businesses;
  • Project must involve private (i.e., bank or credit union) financing for some portion ofproject;
  • VEDA may also purchase a portion of an eligible bank loan.
Small Business Loan Program
  • Loans up to $350,000 (or 40% – 50% of a project, whichever is less) to finance both fixed assets and working capital;
  • Eligible borrowers must be U.S. citizens and unable to access adequate conventional credit;
  • Eligible businesses include manufacturing, processing, warehousing, research and development, travel and tourism, information technology, certain energy generation or efficiency projects, retail and service businesses, and others as defined in statute
Small Business Energy Loan Program
  • Loans up to $350,000 to finance smaller qualifying commercial renewable energy and energy efficiency improvement projects;
  • Eligible businesses include all those listed above in the Small Business Loan Program, as well as non-profit business entities and municipalities, with the exception of housing-related businesses;
EDA Business Recovery Fund Loan Program
  • Loans up to $250,000 with applicants encouraged to contribute at least 10% toward project costs;
  • Eligible businesses are those that were negatively impacted by the 2011 spring floods, Tropical Storm Irene or the lack of snow during the Vermont 2011-2012 winter. Such businesses may have sustained direct physical damage, some form of economic injury or some ancillary damage from any of the disasters noted above;
  • Loans may be made for machinery and equipment acquisition and/or working capital. Refinancing is generally prohibited unless there is a “sound economic justification” for doing so;
  • Most kinds of businesses are eligible as above, except those engaged in gambling facilities or speculative or illegal activities. Farm businesses are also eligible.
  • The Vermont Small Business Development Center will provide no-cost, responsive technical assistance to businesses seeking financing under the Program.
Technology Loan Program
  • Loans up to $250,000 to assist companies in the technology sector;
  • Loans may be made for working capital or fixed assets.
Mortgage Insurance Program
  • Insurance of up to 75% of a bank loan, not to exceed $1 million;
  • Insured loan may be for fixed assets and/or working capital; and
  • Eligible businesses include those listed in Direct Loan Program above.
Energy Loan Guarantee Program
  • Guarantee of up to 75% of a bank or credit union loan, not to exceed $250,000;
  • Guaranteed loan must be for an energy efficiency project;
  • Eligible businesses include all types of businesses, including non-profits and municipalities, with the exception of housing-related businesses;
  • See your lender or Efficiency Vermont for more information.
Local Development Corporation Program
  • Loans to nonprofit local and regional development corporations for land for industrial parks, industrial park planning and development, construction or improvement of “spec” buildings or small business incubator facilities.
Revenue Bond Program
  • Tax-Exempt Bonds may be issued for certain manufacturing or 501(c)(3) entities, or certain “exempt facilities”;
  • Best utilized for projects over $1 million; limit is $10 million per Federal statute for manufacturing entities;
  • Bonds do not carry guarantee of VEDA or the State of Vermont;
  • Marketability and rate based on creditworthiness of borrower.
SBA 504 Program
  • Financing up to 40% of a project (up to $5.5 million) for acquisition of land and buildings, improvements, or for the purchase of machinery and equipment; and
  • Eligibilty requirements per SBA regulations.
Vermont Capital Access Program
  • Designed to encourage the extension of credit to businesses which might otherwise have difficulty accessing credit. Establishes a pooled portfolio cash reserve with participating banks, which is available to cover losses on enrolled loans;
  • See your bank or credit union for more information.
Brownfields Revitalization Program
  • Loans to assist in the redevelopment of eligible contaminated properties that meet the EPA definition of ‘Brownfields’; and Available to for-profit, not-for-profit and municipal entities deemed eligible under State’s Redevelopment of Contaminated Properties Program (RCPP).
State Infrastructure Bank Program
  • Loans for construction or reconstruction of highways, roads and bridges or certain rail transit facilities, and electric vehicle charging stations;
  • Eligible entities include municipalities, regional development corporations or political subdivisions of the state. Private sector companies entering into a contract with a public authority to carry out a qualified project are also eligible.
State Drinking Water Program
  • Privately-owned community and privately-owned nonprofit, non-community public water systems are eligible;
  • Loans to plan, permit, design, construct, repair or improve an existing eligible water system to comply with federal and state standards;
  • Projects must be reviewed and recommended by the Agency of Natural Resources.
Export Assistance
  • As the City/State Partner of the United States Export-Import (Ex-Im) Bank, VEDA provides loan packaging and is the Vermont liaison with the Ex-Im Bank in Washington, D.C.;
  • VEDA may also provide a direct source of financing for support of export sales through Ex-Im Bank’s working capital guarantee and insurance programs.

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