10/30/2020 - Montpelier, VT – The Vermont Economic Development Authority (VEDA) approved $75 million in financing assistance for 439 Vermont businesses and farms during its fiscal year ended June 30. Loans were approved to businesses in over 17 economic sectors like agriculture, manufacturing and renewable energy generation, often in partnership with local banks, credit unions and other lenders.
VEDA approved $11.7 million in Paycheck Protection Program (PPP) forgivable loans for 264 Vermont businesses and farms as part of its support of federal and state economic disaster relief programs. The PPP program was established by the CARES Act to provide disaster relief funds to those impacted by COVID-19 and is being implemented by the U.S. Small Business Administration (SBA).
“Vermont’s strong network of lending institutions and state agencies worked hard this year to deliver relief funds to hundreds of businesses and farms, helping them weather the economic impact of the COVID-19 health crisis,” said Cassie Polhemus, VEDA’s Chief Executive Officer. “It’s been a difficult year for many economic sectors and some needs have still not been met, but we will continue to work hard and collaboratively with our partners in the year ahead to ensure Vermont businesses and farms remain economically viable through this challenging time.”
As for its traditional loan programs in FY20, VEDA approved $10.2 million in agricultural loans, $10.3 million in commercial loans, $11.0 million in renewable energy loans, $10.2 million in small business loans, and $14.7 million for its affiliate loan programs, including the Brownfields Revitalization Fund which is used to clean up contaminated properties.
In the past three fiscal years, VEDA has provided financing to 119 startups and created or retained over 1,400 jobs across all of Vermont’s economic sectors. It has provided over $28 million in financing to hundreds of small businesses and helped 44 businesses transition to new ownership.
The Authority has been helping Vermont businesses and farms obtain grants from Vermont’s share of the Federal Coronavirus Relief Fund created under the CARES Act. Working with the Agency of Commerce and Community Development, the Agency of Agriculture Food and Markets, the Department of Forests, Parks and Recreation, and the Working Lands Enterprise Board, VEDA has processed hundreds of grants for businesses, agricultural and forestry enterprises.
“VEDA is committed to its role as a reliable lending partner for thousands of businesses and farms across the state, whether through traditional lending or supporting disaster relief programs,” said Thomas Gallagher, VEDA Board Chairman. “VEDA has helped many businesses weather the challenges of this pandemic, which will pay dividends for Vermont’s economy well into the future, as they continue to grow, create jobs and improve the prosperity for Vermonters.”
VEDA’s fiscal year runs from July through June. At June 30, 2020, VEDA had $316.7 million in total assets. Its loan portfolio totaled $278.6 million. Since its inception in 1974, VEDA has approved financings totaling over $2.5 billion.
The Authority’s FY20 Annual Report can be downloaded at www.veda.org/about-veda/annual-reports/. VEDA cancelled its Annual Luncheon Meeting this year due to COVID-19.
The Vermont Economic Development Authority (VEDA) is Vermont’s economic development finance lender. Created by the Vermont General Assembly in 1974, VEDA’s mission is to contribute to Vermont’s economic vitality by providing a broad array of financing programs to eligible businesses that create jobs and help advance Vermont’s public policy goals.
VEDA offers a wide range of low-cost lending options for Vermont businesses and farms of all sizes, and the Authority’s lending solutions are customized to each borrower’s individual needs. Whether in the form of direct loans, tax-exempt bond issuance or loan guarantee support, VEDA’s innovative financing programs help ensure that Vermont businesses and farms have the capital they need to grow and succeed. VEDA most often lends in conjunction with banks and other financing partners, helping to stimulate economic development activity in Vermont.
Since inception, VEDA has provided over $2.5 billion in financing assistance to thousands of eligible Vermont entrepreneurs, manufacturers, small businesses, family farms, and agricultural enterprises.
VEDA has four offices throughout Vermont – in Montpelier, Burlington, Middlebury and St. Johnsbury. For more information about VEDA, visit www.veda.org or call (802) 828-5627.