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Technology Loan ProgramVEDA’s Technology Loan Program provides financing to eligible for-profit and non-profit corporations offering technology-based goods and services to consumers located both inside and outside Vermont.
Eligibility
- Individuals, partnerships, corporations or companies who wish to undertake a project that meets the requirements of Title 10, V.S.A., Chapter 12, Sections 280aa and 280bb;
- Companies whose major activity is offering technology-based goods and services, as the Authority may in its sole discretion determine, to customers located both inside and outside Vermont;
- For-profit and non-profit organizations.
Use of Proceeds
- Purchase of capital assets and/or for working capital;
- Refinance existing company debt or assets in certain cases, as the Authority may determine.
Loan Rates and Terms
- Depending on the purpose for which the TLP loan is approved, VEDA’s loan term will not exceed five (5) years;
- 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 revenues therefrom, and/or a security interest in the proprietary technology used by the borrower, if appropriate;
- Loans also will generally be guaranteed by any entity or individual who owns or controls at least 20% of the applicant 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;
- VEDA’s interest rate will be based on VEDA’s Base Rate Index, as adjusted from time to time, plus 3% and, at the discretion of the Authority, payment by the borrower of all or a portion of the accruing interest may be deferred for some period of time up to the maturity date of the loan.
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;
- The maximum amount of any TLP loan will be $100,000.
Fee Structure
A processing fee of ˝ of 1% of the TLP loan amount is payable to VEDA when the commitment letter for the TLP loan is executed and returned by the applicant.
VEDA reserves the right to amend the above policy guidelines generally, or modify them for a particular project, in the Authority’s sole discretion.
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