$29.7 MILLION IN BUSINESS FINANCING APPROVED BY VEDA

March 29, 2010

 MONTPELIER, VT – More than $59.6 million in economic development activity throughout Vermont will be generated with the help of $29.7 million in financing approved by the Vermont Economic Development Authority (VEDA).   Approved financing will support projects in renewable energy, manufacturing, small business, agriculture, technology, brownfields redevelopment, and private drinking water system upgrades.
 
“With the help of federal stimulus funds, VEDA is able to offer bond financing assistance to several large-scale initiatives seeking to retain and create Vermont jobs,” said Jo Bradley, VEDA’s Chief Executive Officer.  “In addition, several small companies will be able to invest in energy conservation, real estate development, and technology projects to help grow their businesses.”
 
·         Skypoint Solar, Inc., Essex Junction – Utilizing American Recovery and Reinvestment Act (ARRA) federal stimulus funds, Recovery Zone Facility Bonds totaling $25 million were given initial (Inducement) approval by the VEDA Board for the planned start-up of a solar cell manufacturing facility.  Skypoint is looking at several sites in Vermont, including a former IBM building in Essex Junction.  The project involves the installation of a platform for the manufacture of high performance, thin film solar cells and modules.  In addition to manufacturing, Skypoint plans to have state-of-the-art research facilities, on-site medical care for employees and their families, day care and other unique employee benefits.  Pending final approval of the bonds, and an additional capital raise, the Company estimates that project implementation will create an estimated 452 direct new jobs.

Through VEDA’s Economic Recovery and Opportunity Program, direct loans were approved for:

·         Vermont Sports Car, Georgia – A $1.2 million loan participation was approved as part of Vermont Sports Car’s $3 million project to purchase and renovate a 56,250 square foot building in the Georgia Industrial Park.  The property is presently vacant, and the project will restore it to productive use.  Begun in the 1980s as a custom sports car restoration company, Vermont Sports Car now has 23 employees, and operates the Subaru Rally Team USA’s rally sports car team in North America.  As a result of the expansion project, Vermont Sports Car hopes to add at least 5 new employees within three years.

·         New England Supply, Inc., Williston – Financing of $380,000 was approved as part of a $950,000 project to purchase machinery and equipment.  New England Supply, Inc. is a start-up manufacturing facility.  Business principals hope to create 16 new jobs within three years of the project.
 
·         Bennington Ironworks, Bennington – A $70,800 loan was approved as part of a $177,000 equipment purchase project to help Bennington Ironworks expand sales.  Established in 1968, Bennington Ironworks designs, fabricates and erects a variety of iron products. The company has 45 employees.

 
VEDA also approved $320,000 through the Authority’s Small Business Loan Program, including:

·         $200,000 to Thomas Hirchak Company, Inc. as part of a $2 million project to purchase and renovate a building in Essex Junction; and
 
·         $40,000 to Rainbow Pediatrics of Middlebury as part of a $110,000 project to convert the practice’s documents to an electronic record management system.

 
Through VEDA’s Business Energy Conservation Loan Program, designed to help small businesses make energy efficiency and conservation improvements, the Authority approved $86,500, including:

·         $55,000 to Highland Sugarworks, Inc. in Barre for boiler replacement and other energy improvements.  

 
In addition, VEDA approved:

·         $1.8 million  in financing to Vermont farmers through the Authority’s agricultural loan program, the Vermont Agricultural Credit Corporation (VACC);

·         $393,262 to repair or improve existing privately-owned drinking water systems through VEDA’s Drinking Water State Revolving Loan Fund;

·         $182,000 to assist in the redevelopment of contaminated properties through VEDA’s Brownfields Revitalization Fund Loan Program; and

·         A mortgage insurance agreement for $190,039 of the working capital loan extended by Peoples United Bank to Cabot Hosiery Mills, Inc. in Northfield.

 
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 $1.5 billion.  For more information about VEDA, visit www.veda.org or call 802-828-5627.