Direct Loan Program
This program helps borrowers to finance fixed assets. It is utilized in conjunction with bank financing. VEDA may either make its own direct loan or purchase a portion of a bank loan.
- Individuals, partnerships, corporations or limited liabiility companies engaged in manufacturing, processing, warehousing, research and development, recycling, travel & tourism, information technology and other businesses as definited in statute;
- Applicants must demonstrate potential to create/retain employment for Vermonters or import capital into Vermont.
Use of Proceeds
- Purchase of land and building, including new construction or renovation;
- Purchase and installation of machinery and equipment, furniture and fixtures;
- VEDA cannot finance or refinance existing company assets or debt.
Loan Rates and Terms
- Attractive variable rates, adjustable on a quarterly basis. Click here for current rates and fees;
- Term for real estate loans is 10 years, generally amortized on a 15-year basís;
- Term for machinery and equipment loans is generally 5-7 years based on the useful life;
- In certain circumstances, a fixed interest rate may be available for large loans. Talk to your VEDA loan officer.
- VEDA may not fund more than 40% of the cost of the project. Typically, a bank will lend 50% of the project and the remaining 10% will be provided by the borrower; and
- The maximum amount of any direct loan can be up to $1.5 million, and $2.0 million for certain energy-related projects.
- Applicants are advised to discuss their proposed project with VEDA staff 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 and print the application or right click to "Save Link As..." to utilize the fillable application. If you can’t open this application, download the free Adobe PDF Reader.
- Applications may also be obtained at the VEDA offices in Montpelier, Burlington, and Middlebury.