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.)
Eligible Borrowers:

  • 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 five years with amortization up to 15 years.
  • Interest: Variable Rates based on VEDA Base + appropriate risk-based spread. 
  • 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. 

Application Process

  • 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.