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).

Eligibility

  • 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.

Fees

  • $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