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 $2.0 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 $2.0 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