Eligibility
- Individuals, partnerships, corporations or limited liability companies engaged in manufacturing, processing, warehousing, research and development, recycling, travel & tourism, information technology and others as defined in statute.
Use of Proceeds
- Purchase of land and buildings, including construction or renovation;
- Purchase and installation of machinery and equipment, furniture and fixtures; and
- VEDA cannot finance or refinance existing company assets or debt.
Loan Rates and Terms
- Attractive variable rates, adjusted on a quarterly basis;
- Term for real estate loans is 10 years, generally amortized on a 15-year basis;
- Term for machinery and equipment loans is generally 5-7 years; and
- In certain circumstances, a fixed interest rate may be available for large loans. Talk to your VEDA loan officer.
Borrowing Limitations
- VEDA may not fund more than 40% of the cost of the project. Typcially, a bank will lend 50% of the project and the remaining 10% will be provided by the borrower; and
- The maximum amount of any direct loan can be up to $1.3 million.
Fees
- 1% commitment fee;
- $1,000 minimum to $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 $250,000 may be approved internally by VEDA staff;
- Loans exceeding $250,000 are presented to the VEDA Board monthly for consideration;
- Applicants are advised to discuss their proposed project with VEDA staff prior to submitting the application; and
- Applications may be downloaded or obtained from the VEDA office.
