Broadband Loan Program
The legislature created Subchapter 14 of VEDA’s Statute to enable the authority to make loans that expand broadband service to unserved and underserved Vermonters.
Program Purpose & Use of Loan Proceeds
- Loans may be made for startup projects and expansion of existing projects. Eligible project costs include working capital, construction, infrastructure installation.
- Applicants should be directed to the Vermont Department of Public Service for grant and technical assistance opportunities for developing feasibility studies.
- Borrowers eligible to participate include communications union districts and other units of government, nonprofit organizations, cooperatives, and for-profit businesses.
- Applicants must be capable of offering broadband service of speeds of at least 100 Mbps symmetrical.
- Per the requirements of the legislation, VEDA shall consult with the Department of Public Service “…to ensure the limited funding available through the Program supports the highest-quality broadband available to the most Vermonters and prioritizes delivering services to the unserved and underserved …”
Loan Terms and Borrowing Limitations:
- Maximum Loan Amount: $4.0 million.
- Maximum Financing: Up to 90% of project costs.
- Term: Up to five years with 15-year amortization. Principal (and possibly interest) may be deferred up to 2 years in certain cases based on the business plan.)
- Interest: Variable Rate of VEDA Base + 2.0% for the term.
- Collateral: First security interest in all business assets; assignment of all applicable contracts and agreements necessary to operate the system.
- Guarantees: Personal guarantees of owners of 20% or more, if available. (Note: In most cases personal guarantees are not expected to be available.)
- Applications are available to download here, or at any VEDA office by calling (802) 828-5667.
- Loans will be processed by VEDA using a streamlined underwriting and credit review process.
- Loans will be closed in an expedited manner.