Business Energy Conservation Loan Program

Eligibility

  • Businesses must be 51% owned by U.S. citizens;
  • Includes (but is not limited to) companies engaged in the following industries: manufacturing, processing or assembly of products, hospitality, service providers, farms and retail. Non-profit businesses are also eligible;
  • Loans may not be made for improvements to public buildings and facilities such as public schools and municipal buildings; and
  • Multi-family properties are not eligible.

Use of Proceeds

  • Purchase and install thermal envelope improvements; power, heating, ventilation, and cooling system improvements; lighting and new HVAC equipment that is certified as energy-efficient;
  • Purchase of APU’s (Auxiliary Power Units), and equipment necessary to conduct energy audits for businesses and residences;
  • Loans may not be made to refinance existing debt or assets; and
  • For projects costing more than $20,000, applicants will work with Efficiency Vermont to ensure that projects meet cost-effectiveness requirements.

Loan Terms

  • The maximum loan term will be five years, but in certain cases loans may be amortized up to ten years; and
  • Interest rate on the loan for the first three years will be VEDA’s Prime Rate minus .75%, adjusted as VEDA’s Prime Rate changes. Thereafter, the interest rate on the loan will be fixed for the remainder of its term at VEDA’s then prevailing Vermont Small Business Loan Program Index.

Fee Structure

  • $1,500 commitment fee;
  • $1,000 closing fee;
  • $50 credit report fee;
  • $18 flood insurance certification (if required);
  • Document recording/discharge fees; and
  • No application fee.

Application Process

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