Local Development Corporation Loan Program
This program provides financing to nonprofit local and regional development corporations to build facilities for lease to identified eligible tenants, or to plan and/or develop industrial parks.
- All nonprofit local and regional development corporations (LDCs and RDCs).
Use of Proceeds
- Purchase of land for industrial parks;
- Industrial park planning and development;
- Construction or improvement of speculative buildings;
- Small business incubator facilities.
Loan Rates and Terms
- Loan terms vary depending on the purpose of the loan. See current VEDA rates;
- VEDA must have a first mortgage on the land, leasehold improvements or building, and appurtenances financed;
- Industrial park loans cannot exceed 80% of the appraised fair market property value.
- 1% commitment fee;
- $1,000 minimum to $3,500 maximum;
- $18 flood insurance certification (if required);
- Document recording/discharge fees;
- No application fee.
- Loans up to $350,000 may be approved internally by VEDA staff;
- Loans exceeding $350,000 are presented to the VEDA Board for monthly consideration;
- Applicants are advised to discuss their proposed project with VEDA staff prior to submitting the application;
- Applications may be downloaded or obtained from the VEDA office.