Broadband Expansion 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 broadband projects and expansion of existing broadband networks. Eligible project costs include working capital, construction, and infrastructure / installation.
- Applicants may contact the Vermont Department of Public Service for grant and technical assistance opportunities for developing feasibility studies. (Refer to the Broadband Innovation Grant Program.)
- 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 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: Loans up to 10 years with amortization up to 15 years.
- Interest: Variable Rates based on VEDA Base + appropriate risk-based spread. Payments may be deferred up to two years.
- 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.
- Applications are available to download here, or at any VEDA office by calling (802) 828-5627.
- Feasibility study and/or a detailed business plan is required.