Eligibility

• Companies whose major activity is offering technology-based goods and services to customers located both inside and outside Vermont.

Use of Proceeds

• Purchase of capital assets and/or for working capital; and
• Refinance existing company debt or assets in certain cases.

Loan Rates and Terms

• Term of loan is based on assets being financed;
• The Authority may collateralize its loans with mortgages on real estate and/or security interests in project machinery and equipment, an assignment of customer contracts, and/or a security interest in the company’s proprietary technology used by the borrower;
• Loans also will generally be guaranteed by any entity or individual who owns or controls at least 20% of the company. Flexibility with regard to collateral will be considered if adequate debt service cash flow coverage can be demonstrated;
• In some cases the Authority may utilize non-conventional financing mechanisms and collateral arrangements including, but not limited to, royalty financing; and
• VEDA’s interest rate will be based on VEDA’s Base Rate Index, as adjusted from time to time, plus 3%. Please click here for current interest rates.

Limitations

• VEDA may not fund more than ninety percent (90%) of the cost of the project. Typically, the borrower will be required to provide the remaining ten percent (10%) of the total project cost; and
• The maximum amount of any TLP loan is $250,000.

Fees

• 1% commitment fee;
• $250 minimum to $2,000 maximum;
• $50 credit report fee;
• $18 flood insurance certification (if required);
• Appraisal reimbursement (if applicable);
• Document recording/discharge fees; and
• $100 application fee.