Financing for Vermont Businesses and Farms

Small Business Energy Loan Program

This program helps Vermont businesses finance relatively smaller qualifying renewable energy generation and energy efficiency improvement projects.  The maximum loan under this program is $500,000 (see Borrowing Limitations section below).


  • Individuals, partnerships, corporations (profit and non-profit), limited liability companies and municipalities planning to undertake a project for construction or improvement of 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 relating to renewable energy generation or efficiency improvements for single or multi-unit residential properties are not eligible.

Use of Proceeds

Must relate to renewable energy generation and/or energy efficiency improvements and/or energy technology. Uses include:

  • Purchase of land and buildings, new construction or existing facility renovations or refurbishment;
  • Purchase and installation of machinery and equipment;
  • Payment for design, engineering and permit fees relating to an eligible project;
  • In certain cases rather than make a separate loan, VEDA may purchase a portion of a bank loan made for eligible purposes;
  • VEDA cannot finance or refinance existing assets or debt relating to an eligible project.

Loan Rates and Terms

  • Loan term and amortization determined on a case-by-case basis, generally a maximum loan term of 10 years with a maximum 15-year amortization;
  • Please click here for current rates and fees.

Borrowing Parameters

  • VEDA may not fund more than 60% of the cost of the project.  However, in certain circumstances, loans not to exceed $50,000 may be made for up to 75% of the cost of a project;
  • The maximum loan amount is $500,000.


  • $100 application fee;
  • 1.25% commitment fee with $250 minimum and $2,500 maximum;
  • Independent Engineer Review fee;
  • $50 credit report fee;
  • Appraisal reimbursement (if applicable);
  • Document recording/discharge fees.

Application Process