| Program |
Rates |
Fees |
|
Direct Loan Program
Small Business Loan Program (VSBDC)
Local Development Corporation Program
Commercial & Agricultural Energy Loan Programs
|
- Variable interest rates based on VEDA’s cost of funds, typically comparable to bank interest rates.
- Fixed interest rates (fixed for 5 years) on loans up to $500,000. Interest rates may be re-fixed for an additional 5 year period at then prevailing interest rates or converted to VEDA’s variable interest rates.
- Interest rates include a VEDA subsidy for the first 5 years based on the Project’s economic development potential.
- Interest rates are adjusted weekly based on the markets. Please call for current VEDA variable and fixed commercial interest rates.
|
- Loans ≤ $1,000,000: 1% commitment fee with a $5,000 maximum*
- Loans > $1,000,000: 0.5% commitment fee, with no cap.
- Minimum commitment fee of $250
- $30 Credit Report fee
- If applicable: Appraisal fee (or Commercial Engineering Report on Solar loans), Document Recording fee, Flood Certificate fee and other out-of-pocket fees.
*Projects involving NMTC have no maximum |
|
Tax-Exempt 501(c)(3) & Small Issue Manufacturing Revenue Bond Programs
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- Interest rates on tax exempt bonds issued by VEDA may be variable or fixed and are negotiated between borrower and bond purchaser(s).
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Issuance fee:
- 501 (c) (3) Non-Profit bonds: 0.5% of bond up to $25 million
- Small Issue Manufacturing Bonds: 0.625% of bond for new issue up to $25 million
- New bonds over $25 million or for refunding of bonds originally issued by VEDA: 0.25% of bond issuance
Up to 2% of bond proceeds may be used for certain project fees.
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Entrepreneurial Loan Program
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- SBA Community Advantage Guaranty of 75% to 85% of loan amount for eligible ELP loans needing additional collateral on loans up to $350,000.
- Unguaranteed: variable WSJ Prime+ 2.50%
- SBA guaranteed: variable WSJ Prime or VEDA 5-year Fixed Rate
|
- 1% commitment fee with a minimum fee of $250.
- SBA Community Advantage Guaranty: Borrowers are responsible for up-front guaranty fees when required. These fees vary with loan size and term. SBA is currently waiving these fees.
- $30 Credit Report fee
|
|
SBA 504 Program
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- Rates are set monthly by the SBA for 10, 20 and 25 year terms based U.S Treasury bond rates plus spread.
- Rates are fixed for the life of the loan at closing.
Rates for February 2025:
- 10 Year (Note Rate) 5.13%
- 10 Year (Effective Rate) 6.66%
- 20 Year (Note Rate) 5.08%
- 20 Year (Effective Rate) 6.36%
- 25 Year (Note Rate) 5.06%
- 25 Year (Effective Rate) 6.29%
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- Effective rates include fees which are financed into the loan.
* Note – Rates are fixed for the life of the loan at closing and are set monthly. Fees and upfront costs are typically financed.
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