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.
Eligibility
- 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 20-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.
Borrowing Parameters
- 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 $5 million, and $6 million for certain energy-related projects.
Application Process
- 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. 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.
