Financing for Vermont Businesses and Farms

Small Business Energy Loan Program

This program helps Vermont businesses finance relatively smaller qualifying renewable energy generation and energy efficiency improvement projects.  The maximum loan under this program is $500,000 (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 fixed rate; (See Current Rates and Fees page);
  • Loan term and amortization determined on a case-by-case basis, generally a maximum loan term of 10 years with a maximum 15 year amortization.

Borrowing Limitations

  • VEDA may not fund more than 60% of the cost of the project.  However, in certain circumstances, loans not to exceed $50,000 may be made for up to 75% of the cost of a project;
  • The maximum loan amount is $500,000.


  • 1.25% commitment fee with $250 minimum and $2,500 maximum;
  • Independent Engineer Review fee;
  • $50 credit report fee;
  • $18 flood insurance certification (if required);
  • Appraisal reimbursement (if applicable);
  • Document recording/discharge fees; 
  • $100 application fee.

Application Process

  • Loans may be approved internally by VEDA staff;
  • Applications may be obtained from the VEDA office by calling 802-828-5627;
  • Applicants are advised to discuss their proposed project with a VEDA loan officer prior to submitting the application.