Vermont Economic Development Authority (VEDA) Rates

Every attempt is made to assure VEDA’s most current rates are posted; however, VEDA reserves the right to adjust its rates as interest rates and market conditions fluctuate. Please contact a VEDA representative to assure you have the most current rate information.

VEDA Commercial Loan Programs
Programs
Eligible Use of Funds & Loan Terms*
Rates (as of 01/02/2018)
Fees
  • Fixed Assets: Real Estate, Machinery & Equipment, Furniture & Fixtures up to 40% of project costs
  • Bank financing must be part of project
  • Real Estate: 10 year maturity; 10-15 year amortization
  • Machinery & Equipment:  5-7 years
  • Furniture & Fixtures:  5-7 years
  • Maximum Loan:  $1.5 - $2.0 million based on use of funds
  • Taxable, variable rates may be as low as 4.75% if certain economic development criteria are met.

  • Tax-Exempt, variable rates may be as low as 4.50% if certain economic development criteria are met and the borrower is eligible for tax-exempt funding.

  • These rates are resultant of applied subsidy, available for at least 2-years.

  • 1% Commitment fee ($5,000 maximum)**
  • $30 Credit Report fee
  • If applicable:  Appraisal fee, Document Recording fee, Flood Certificate fee

*Eligible businesses include manufacturing processing, warehousing, research travel & tourism, information technology and certain related energy projects and other businesses allowed by statute.

**Projects involving NMTC have no maximum.

Note: Working Capital and refinancing are not eligible uses in this program.

  • Fixed Assets: Real Estate, Machinery & Equipment, Furniture & Fixtures up to 40% of project costs
  • Real Estate: 10 year maturity; 10-15 year amortization
  • Machinery & Equipment: 5-7 years
  • Furniture & Fixtures:  5-7 years
  • Maximum loan $500,000
  • Working Capital: up to 50% of project cost (3-year term)
  • Up to 75% for loans under $50,000
  • Minimum borrower equity 10%
  • Eligible borrowers must be U.S. Citizens or 51% - owned by U.S. Citizens and unable to access conventional credit
  • Fixed rate for 5 years, converting to variable rate thereafter.

  • Please call for current Small Business fixed rate.

  • 1% Commitment fee ($5,000 maximum)
  • $30 Credit Report fee
  • VEDA is conduit issuer; thereby enabling eligible borrowers to access tax-exempt bond market
  • Fixed Asset projects (Real Estate, Machinery & Equipment) that further the tax-exempt mission of the 501(c)(3) organization
  • Generally appropriate for projects in excess of $2 million
  • Process includes two steps – initial inducement and final approval
  • Bonds are not guaranteed by VEDA or State of Vermont
  • Negotiated between borrower and bond purchaser(s)  
  • Issuance fee:  0.5% of bond up to $25 million
  • 0.25% over $25 million
  • Up to 2% of bond proceeds may be used for certain fees
  • Manufacturers engaged in production of tangible personal property for:
  • Purchase land and/or improve real estate
  • Construction of new manufacturing facility
  • Purchase new equipment
  • Generally appropriate for projects in excess of $2 million
  • Negotiated between borrower and bond purchaser(s)
  • Issuance fee:  0.625% of bond for new issue
  • 0.25% for refunding issue

* Note: Refinancing is not an eligible use of funds.

  • Fixed assets
  • Working capital
  • Loans up to 90% of project costs
  • Minimum 10% equity
  • Maximum exposure up to $350,000 to a borrower at a time
  • SBA Community Advantage Gty of 75% to 85% for eligible ELP loans

Variable Rate: WSJ Prime + 3.50%

  • 1% Commitment fee 
  • $30 Credit Report fee
  • Real Estate acquisition, construction, renovation or expansion up to 40% of project costs
  • Machinery & Equipment
  • Soft costs
  • Maximum loan $5.0 million ($5.5 million for manufacturers)
  • Prepayment penalties apply
  • Refinancing subject to SBA regulations




Rates are set monthly by the SBA based on current 10 and 20 year US Treasury bond rates plus spread
  • Rates are fixed for the life of the loan at closing.
  • Rates for July, 2018
    • 10 Year (Note Rate) 3.31%
    • 10 Year (Inc. Fees) 5.30% 
    • 20 Year (Note Rate) 3.64%
    • 20 Year (Inc. Fees) 5.30% 
    • 25 Year (Note Rate) 3.75%
    • 25 Year (Inc. Fees) 5.35% 
Rates include SBA fees
  • Ongoing:
    • CDC: .625%
    • CSA: .10%
    • Borrower: .642%
  • Upfront:
    • Funding Fee: .25%
    • Underwriting: .40%
    • CDC Processing: .50%

* Note – Rates are fixed for the life of the loan at closing and are set monthly. Fees and upfront costs are typically financed.

VEDA Energy Loan Programs
Programs
Eligible Use of Funds & Loan Terms
Rates
Fees
  • Projects relating to renewable energy generation, efficiency or energy technology;

  • Soft costs for eligible projects;

  • Generally up to 60% of project cost*;                

  • Minimum borrower equity 10%;

  • Maximum loan $2 million with the variable rate option and $500,000 with the fixed rate option.  

Variable Rate Option - Loans up to $2 million:
  • Initial variable rate is subsized for two-years,  currently resulting in 4.75 – 5%
  • After two years, rate adjusts with the variable VEDA Rate for the remaining term
Fixed Rate Option - Loans up to $500,000:
  • Fixed rate for 5 years, converting to variable rate thereafter.
  • Please call for current Energy fixed rate
  • No application fee;

  • 1% Commitment fee ($5,000 maximum);

  • Independent Engineer Project Review fee (approximately $900);

  • $30 Credit Report fee;

  • Flood Insurance Certificate fee, document recording and discharge fees may be required.

*In some case VEDA can finance up to 90% of the project cost, up to a maximum loan amount of $500,000.

  • Projects relating to renewable energy generation, efficiency or energy technology;
  • Fixed Assets: Real Estate, Machinery & Equipment, Furniture & Fixtures up to 40% of project costs;
  • Real Estate 10-20 yr. maturity; 10-15 yr. amortization;
  • Machinery & Equipment, Furniture & Fixtures (5-7 years);
  • Soft costs for eligible projects.
Variable Rate Option - Loans up to $2 million:
  • Initial variable rate is subsized for two-years,  currently resulting in 4.75 – 5%
  • After two years, rate adjusts with the variable VEDA Rate for the remaining term
Fixed Rate Option - Loans up to $500,000:
  • Fixed rate for 5 years, converting to variable rate thereafter.
  • Please call for current Energy fixed rate
  • No application fee;

  • 1% Commitment fee ($5,000 maximum);

  • Independent Engineer Project Review fee (approximately $900);

  • $30 Credit Report fee;

  • Flood Insurance Certificate fee, document recording and discharge fees may be required.
VEDA Agricultural Loan Programs
Programs
Eligible Use of Funds & Loan Terms
Rates*
Fees
  • Acquisition / renovation of farm real estate
  • Purchase livestock, Machinery & Equipment
  • Working capital
  • Capital improvements
  • Water /soil conservation
  • Refinancing 
  • Variable Rate Option: Subsidized for 2 years, resulting in 4.75 - 5.50%.
  • Variable VACC Prime+ for the remaining term of the loan.
  • Fixed Rates available
  • Commitment fee of 0.5% ($3,500 maximum)
  • FSA Guaranty fee (if applicable)

*Rates will change as interest rates and market conditions fluctuate.

Expenses incurred during organic transition, including:

  • Infrastructure improvements
  • Transition of land base
  • Transition of dairy herd
  • Changes in cropping methods
  • Operating losses related to transition
  • Maximum loan size $200,000
  • Rate: VACC Variable Rate. Interest during the transition period (up to 2 years) is 100% subsidized by Working Lands Enterprise Board
  • Principal payments may also be deferred by VACC for a similar period
  • No fees for Borrower