Financing for Vermont Businesses and Farms

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.  See current VEDA rates;
  • 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.

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 $1.5 million, and $2.0 million for certain energy-related projects.


  • No application fee;
  • 1% commitment fee;
  • $1,000 minimum to $3,500 maximum;
  • $50 credit report fee;
  • Document recording/discharge fees.

Application Process