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 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.

Application Process