Commercial Energy Loan Program

Eligibility

  • 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 40% of the cost of the project.  Typically a bank will lend 50% of the project cost and (at least) the remaining 10% will be provided by the borrower;
  • The maximum loan amount is $2.0 million.

Fees

  • 1% commitment fee with $1,000 minimum and $3,500 maximum;
  • $50 credit report fee;
  • $18 flood insurance certification (if required);
  • Document recording/discharge fees; and
  • 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 obtained from the VEDA office by calling 802-828-5627.

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