AIDED BY FEDERAL STIMULUS FUNDS, VEDA COMMITS $21.7 MILLION IN LOANS TO VERMONT BUSINESSES AND FARMS THROUGH DECEMBER 31, 2009

Commercial Financing Leverages an Additional $41.3 Million in Private Funding

January 28, 2010

MONTPELIER, VT -   With the help of federal stimulus funds available through the American Recovery and Reinvestment Act (ARRA), the Vermont Economic Development Authority (VEDA) has committed $21.7 million in specially interest rate-subsidized loans to Vermont businesses and farms for the period ending December 31, 2009.  On the commercial side, the stimulus financing leveraged an additional $41.3 million in private financing to support projects totaling $55.8 million.
                “In the eight months since ARRA funds were allocated to VEDA by the General Assembly during the 2009 Legislative Session, Vermont businesses and farms stepped up to the plate during a particularly difficult economy and took advantage of unprecedented low interest rates to make business investments,” said Jo Bradley, VEDA’s Chief Executive Officer.  “These investments are vital to the protection and creation of Vermont jobs and the strengthening of Vermont’s economy overall.”
                During the 2009 session, the Vermont General Assembly allocated funds from the ARRA and authorized VEDA to initiate two emergency response programs – the Emergency Recovery and Opportunity program, which offered a limited amount of commercial financing at Prime minus three percent (with a floor of two percent); and the Farm Operating Loan Program, offering low-interest loans to assist Vermont family farmers with spring operating needs.  Response to both programs has been overwhelming. 

“Since the Administration and Vermont General Assembly acted to direct federal stimulus funding to the Vermont business community through VEDA’s financing channels, we have seen a strong response on the commercial side from Vermont companies looking to grow,” said Bradley.  “This is especially heartening during a difficult economy.  At VEDA, we will continue to do our utmost to help Vermont businesses and farms counteract the negative economic pressures that have been the signature of this deep recession.”
                Of the $14.5 million in subsidized commercial financing allocated to 32 projects through the end of 2009, 49% of the funds were loaned to Manufacturing businesses; 29% went to Travel and Tourism businesses; 15% supported projects involving non-residential property; 3% went to personal and business service projects; 2% supported health care projects; and the remaining 2% supported projects involving energy generation and distribution.
                On the agricultural side, 137 Vermont farms received $7.2 million in emergency financing through the end of 2009 to help refinance debt and provide working capital.  VEDA’s agricultural finance program, the Vermont Agricultural Credit Corporation (VACC), originated the loans.
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 35 years ago, VEDA has made financing commitments totaling over $1.5 billion. For more information about VEDA, visit www.veda.org or call 802-828-5627.