Commercial Energy Loan Program
This program helps Vermont businesses finance qualifying renewable energy generation and energy efficiency improvement projects. Maximum loan size under this program is $6.0 million (see Loan Rates, Terms and Fees section below). VEDA may either make its own direct loan or purchase a portion of another Financial Institution's loan.
Eligibility
- Individuals, partnerships, corporations (profit and non-profit), limited liability companies and municipalities planning to undertake a project for construction of or improvements to a renewable energy generating facility; to make energy efficiency improvements to an existing facility; and/or to adopt technologies that enhance or support the development and implementation of renewable energy or energy efficiency, or both;
- Projects funding construction of renewable energy generation or efficiency improvements for individual or small residential properties are not eligible.
Use of Proceeds
Must directly relate to a project for renewable energy generation and/or energy efficiency improvements and/or energy technology. Uses include:
- Purchase of land and buildings, new construction or renovations or refurbishment of existing facilities;
- Purchase and installation of machinery and equipment;
- Payment for design, engineering and permit fees relating to an eligible project;
- VEDA cannot finance existing assets or refinance debt relating to an eligible project.
Loan Rates, Terms and Fees
- VEDA offers attractive variable rates and a low fixed rate option for five years;
- The maximum loan amount is $6.0 million with the variable rate option and $500,000 with the fixed rate option;
- Loan term and amortization determined on a case-by-case basis;
- Click here for current rates and fees.
Borrowing Parameters
- VEDA's funding is generally limited to 60% of the cost of the project, but in some cases VEDA can finance up to 90% of the project cost up to $500,000.
Application Process
- Applicants are advised to discuss their proposed project with a VEDA Loan Officer prior to submitting the application;
- Certain loans may be approved internally; other loans must be presented to the VEDA Board at their semi-monthly meetings;
- To complete the application, click here to download. If you can’t open this file, download the free Adobe PDF Reader.
- Applications may also be obtained at the VEDA offices in Montpelier, Burlington and Middlebury.
