Financing for Vermont Businesses and Farms

Commercial Energy Loan Program

This program helps Vermont businesses finance larger qualifying renewable energy generation and energy efficiency improvement projects.  Maximum loan size under this program is $2.0 million (see Borrowing Limitations section below).


  • Individuals, partnerships, corporations (profit and non-profit) , limited liability companies and municipalities planning to undertake a project for construction of or improvements to a renewable energy generating facility; to make energy efficiency improvements to an existing facility; and/or to adopt technologies that enhance or support the development and implementation of renewable energy or energy efficiency, or both;
  • Projects relating to renewable energy generation or efficiency improvements for single or multi-unit residential properties are not eligible.

Use of Proceeds

  • Must relate to a project for renewable energy generation and/or energy efficiency improvements and/or energy technology;
  • Purchase of land and buildings, new construction or existing facility renovations or refurbishment;
  • Purchase and installation of machinery and equipment;
  • Payment for design, engineering and permit fees relating to an eligible project;
  • In certain cases, rather than make a separate loan, VEDA may purchase a portion of a bank loan made for eligible purposes;
  • VEDA cannot finance or refinance existing assets or debt relating to an eligible project.

Loan Rates and Terms

  • Attractive variable rates, adjustable on a quarterly basis; (See Current Rates and Fees page)
  • Loan term and amortization determined on a case-by-case basis, up to 20 years;
  • In certain circumstances, a fixed interest rate may be available.  Talk to your VEDA loan officer.

Borrowing Limitations

  • VEDA may not fund more than 60% of the cost of the project;
  • The maximum loan amount is $2.0 million.


  • 1% commitment fee with $1,000 minimum and $3,500 maximum;
  • Independent Engineer Review fee;
  • $50 credit report fee;
  • $18 flood insurance certification (if required);
  • Document recording/discharge fees; 
  • No application fee.

Application Process

  • Loans up to $350,000 may be approved internally by VEDA staff;
  • Loans exceeding $350,000 are presented to the VEDA Board monthly for consideration;
  • Applicants are advised to discuss their proposed project with a VEDA loan officer prior to submitting the application;
  • Applications may be downloaded or obtained from the VEDA office.