Burlington, VT – In one year’s time, the Vermont Economic Development Authority’s (VEDA’s) Small Business loan portfolio increased from 190 loans totaling $12.2 million to 480 loans totaling $32.2 million. This increase was due in large part to VEDA’s response to the tremendous damage wreaked by Tropical Storm Irene on Vermont businesses and farms. VEDA closed 299 emergency loans totaling $16.7 million immediately after Irene.
These and other Fiscal Year 2012 summary figures will be presented today at the Authority’s 38th Annual Meeting inBurlington. Governor Peter Shumlin will be the featured Speaker at the event.
“Fiscal Year 2012 was an incredible period of sustained, dynamic activity at VEDA,” said VEDA Chief Executive Jo Bradley. “Vermontbusinesses and farms continued to rely heavily on the Authority’s flexible low-interest financing programs to help weather economic pressures brought on by a deep, national recession. And, in response to the severe damages wrought by Tropical Storm Irene, in coordination with Governor Shumlin’s Administration and Legislative leaders, the Authority undertook the most aggressive emergency lending program in its history.”
The Authority’s total direct lending to businesses and farms in Fiscal Year 2012 was up significantly over the prior two fiscal years — $54.7 million in direct loans closed in Fiscal Year 2012 compared to $40.4 million closed in 2011, and $36.1 million closed in 2010. All financings closed by the Authority during Fiscal Year 2012 – including direct loans, loans attributable to Tropical Storm Irene, agricultural loans, industrial development bonds, mortgage insurance contracts, and loans made under the U.S. Small Business Administration 504 loan program – numbered 564 separate instruments totaling $103.3 million. “VEDA’s $103.3 million in financings leveraged $197.1 million in economic activity statewide,” said Bradley. “This is truly a measure of the degree to which VEDA’s financing programs rely on the valued partnerships the Authority maintains with Vermont’s commercial lenders, and our federal, state and regional partners.”
To better serve the Authority’s commercial and agricultural borrowers, and better coordinate with the Authority’s regional and lending partners, VEDA in FY2012 further expanded its presence of satellite offices throughout Vermont. In addition to offices housed at regional development headquarters in Burlington (Greater Burlington Industrial Corporation), and St. Johnsbury (Northeastern Vermont Development Association), VEDA opened an office in Middlebury (Addison County Economic Development Corporation), and is in the process of opening a location inBrattleboro(Brattleboro Development Credit Corporation).
The Vermont Economic Development Authority (VEDA) isVermont’s statewide economic development finance lender. VEDA was created by the General Assembly in 1974 with a mission “to contribute to the creation and retention of quality jobs inVermontby providing loans and other financial support to eligible and qualified Vermont industrial, commercial and agricultural enterprises.”
Over the years, VEDA has grown and adapted its financing programs to keep pace with an ever-changing economy. VEDA offers a wide range of low-cost lending options forVermontbusinesses and farms of all sizes, and the Authority’s lending solutions are customized to each borrower’s individual needs. Whether in the form of direct loans, tax-exempt bond issuance or loan guarantee support, VEDA’s innovative financing programs help ensure that Vermontbusinesses and farms have the capital they need to grow and succeed. VEDA most often lends in conjunction with banks and other financing partners, helping to stimulate economic development activity inVermont.
Since 1974, VEDA has provided over $1.9 billion in financing assistance to thousands of eligible Vermont entrepreneurs, manufacturers, small businesses, family farms, and agricultural enterprises, helping them to realize their business growth goals, create jobs, and enhance the vitality of Vermont’s economy. For more information about VEDA, visit www.veda.org or call 802-828-JOBS.