Revenue Bond Program for Manufacturers

VEDA acts as a conduit issuer, thereby enabling eligible borrowers to access the tax-exempt market. Revenue bonds are generally appropriate for qualified projects in excess of $1 million; The maximum amount of tax-exempt bonds that can be issued for any project is $10 million.


  • Manufacturers engaged in the production of tangible personal property;
  • Total capital investment by the borrower cannot exceed $20 million in the project municipality covering the three years prior to, and the three years following, the date of issue;
  • Federal tax code provisions must be complied with to assure eligibility for tax-exempt financing; please contact VEDA for more complete information.

Use of Proceeds

  • Must be used for the acquisition of capital assets directly related to manufacturing, including:
    • Land acquisition, up to 25% of bond proceeds;
    • Construction of new manufacturing facility;
    • Purchase of new equipment;
    • Purchase of existing real property, provided that at least 15% of the bond amount will be spent for renovations within 24 months of the date of bond issuance; and
    • Refinancing is not an eligible use of funds.

Bond Terms

  • Payment terms and security requirements are negotiated between the borrower and the bond purchaser.  The bonds are not guaranteed by the State of Vermont or VEDA.  Therefore, marketability of the bonds is based on the creditworthiness of the borrower; and
  • The bonds may be sold through a public offering or privately placed with financial institutions (usually banks) or other institutional investors.


  • Issuance fees are:
    • 0.625% of the bond face amount;
    • 0.25% for refunding issues; and
  • Borrower is also responsible for bond and issuer counsel fees incurred in connection with the issuance of a bond.

Application Process

  • All applications must be considered by the VEDA Board for approval.  This is a two-step process:
    • Preliminary approval (Inducement) must be obtained before any significant project expenditures are made; and
    • Final approval may be granted when applicant has received permits for the project and bond documents have been finalized.
  • Applications may be downloaded or obtained at the VEDA office; and
  • Applicants are advised to discuss their proposed project with VEDA staff prior to submitting the application.

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