Financing for Vermont Businesses and Farms

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. 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
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 yr. maturity; 10-15 yr. amortization
  • Machinery & Equipment, Furniture & Fixtures:  5-7 years
  • Max Loan:  $1.5 - $2.0 million based on use of funds
  • If certain economic development criteria are met, rate may be as low as 2.25% for 2 years
  • Rates generally range from 2.75% to 4%
  • Thereafter rates go to VEDA Prime (3.00%) or VEDA Base (4.00%) dependent on economic development criteria met
  • No application fee
  • 1% Commitment fee ($1,000 min - $3,500 max)
  • $50 Credit Report fee
  • Document Recording fees

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

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 yr. maturity; 10-15 yr. amortization
  • Machinery & Equipment, Furniture & Fixtures:  5-7 years
  • Max loan $500,000
  • Working Capital: up to 50% of project cost (3 year term)
  • Up to 75% for loans under $50,000
  • Min. borrower equity 10%
  • Eligible borrowers must be U.S. Citizens or 51% - owned by U.S. Citizens and unable to access conventional credit
  • Small Business Index – (5.75% - 1.5% = 4.25%)
  • Variable thereafter at VEDA Base + 50 b.p.:  4.50%
  • Rate fixed for 5 years at closing
  • $100 Application fee
  • 1.25% Commitment fee (min. $250; max $2500)
  • $50 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
  • Note:  Refinancing is not an eligible use of funds
  • Negotiated between borrower and bond purchaser(s)
  • Issuance fee:  0.625% of bond for new issue
  • 0.25% for refunding issue
  • Fixed assets
  • Working capital
  • Loans up to 90% of project costs
  • Min. 10% equity
  • Max. exposure up to $350,000 to a borrower at a time
  • SBA Community Advantage Gty of 75% to 85% for eligible ELP loans
  • 7% (VEDA Base + 3.0%)
  • Application fee $100
  • 1.25% Commitment fee (min $250 – max $2,500)
  • $50 Credit Report fee
  • Real Estate acquisition, construction, renovation or expansion up to 40% of project costs
  • Machinery & Equipment
  • Soft costs
  • Refinancing subject to SBA regulations
  • Max. loan $5.0 million ($5.5 million for manufacturers)
  • Prepayment penalties apply




  • 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 January, 2017
    • 10 Year (Note Rate) 2.513%
    • 10 Year (Inc. Fees) 4.60% 
    • 20 Year (Note Rate) 2.848%
    • 20 Year (Inc. Fees) 4.59% 
Rates include SBA fees
  • Ongoing:
    • CDC: .625
    • CSA: .10
    • Borrower: .6375
  • 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. Note rates shown are for debentures funded on the last funding date. There are additional upfront costs which 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
  • Fixed Assets: Real Estate, Machinery & Equipment Furniture & Fixtures up to 60% of project costs
  • Real Estate 10 yr. maturity 10-15 yr. amortization
  • Machinery & Equipment, Furniture & Fixtures (5-7 years)
  • Soft costs for eligible projects
  • Max. loan $2.0 million
  • Variable Rate
  • Initial two year “incentive” rate 2.25%
  • After two years, rate adjusts to VEDA Prime (3.00%) for remaining term
  • If loan is extended beyond initial maturity (extended term rate is VEDA Base 4.00%)
  • No application fee
  • Commitment fee ($1,000 min - $3,500 max)
  • Project review fee (approx. $900)
  • $50 Credit Report fee
  • 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 yr. maturity 10-15 yr. amortization
  • Machinery & Equipment, Furniture & Fixtures (5-7 years)
  • Max. loan $500,000
  • Working Capital: up to 50% of project cost (3 year term)
  • Min. borrower equity 10%
  • Up to 60% of project cost
  • Small Business Index – (5.75% - 1.5% = 4.25%)
  • Variable thereafter at VEDA Base + 50 b.p.:  4.50%
  • Rate fixed for 5 years at closing
  • Application fee $100
  • 1.25% Commitment fee (min. $250; max $2500)
  • $50 Credit Report fee
  • 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 yr. maturity 10-15 yr. amortization
  • Machinery & Equipment, Furniture & Fixtures (5-7 years)
  • Soft costs for eligible projects
  • Up to 60% of project cost
  • Max. loan $2.0 million
  • Variable Rate
  • Initial two year “incentive” rate 2.25% (VEDA Prime - 0.75%)
  • Thereafter rate adjusts to VEDA Prime (3.00%) for remaining term
  • If loan is extended beyond initial maturity, extended term rate is VEDA Base (4.00%)
  • No application fee
  • Commitment fee of 0.5% ($250 min.; $2500 max.)
  • FSA Gty fee (if applicable)
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 is an eligible purpose
  • Variable Rate Option: 3.75% (VACC Prime – 0.5% for 2 years), thereafter VACC Prime +0.5% (4.75%
  • Fixed Rates are available
  • No application fee
  • Commitment fee of 0.5% ($250 min.; $2500 max.)
  • FSA Guaranty fee (if applicable)

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
  • Max. loan size $200,000
  • Rate: VACC Variable Rate Option only. 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