June 3, 2008 Montpelier, VT – The Vermont Economic Development Authority (VEDA) is launching a new commercial loan program offering interest rates as low as three percentage points below Wall Street Journal Prime. The Economic Recovery and Opportunity Program will utilize $1.25 million in funds approved by the Vermont General Assembly in the 2008 legislative session to allow VEDA to make up to $18 million in Program loans over two years.
Governor James Douglas announced the new Program at a press conference Monday with VEDA Chief Executive Officer Jo Bradley.
“The Program will allow us to effectively reduce the interest rates at which we borrow,” said Bradley. “This, in turn, will enable VEDA to pass on the savings to our borrowers, for whom we hope the Program will provide an immediate opportunity to invest in their businesses during these difficult economic times.”
Up to $18 million in funds available under the Program will be loaned on a first-come-first-served basis, and the Program will sunset on June 30, 2010, or when program funds are depleted, whichever occurs first.
“These loan rates are unprecedented in recent memory,” said Bradley. “Based on today’s Wall Street Journal Prime of 5.0%, an initial borrower rate could be as low as 2.0%.” The rates will be adjustable quarterly.
The eligibility, uses and limitations of the Program will match those of VEDA’s Direct Loan Program. VEDA may either make its own direct loan to an eligible and qualified borrower, or purchase a portion of a bank loan. The maximum loan available to any borrower is $1.3 million. Program loan funds may be used to purchase land and buildings, finance construction or renovation, or purchase and install machinery, equipment, furniture and fixtures.
VEDA’s mission is to promote economic prosperity in Vermont by providing financial assistance to eligible businesses, including manufacturing, agricultural, and travel and tourism enterprises. Since its inception in 1974, VEDA has made financing commitments totaling over $1.3 billion. For more information about VEDA, visit www.veda.org or call 802-828-5627.
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Contact Information:
Jo Bradley
Chief Executive Officer
Vermont Economic Development Authority (VEDA)
802-828-5627
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