South Burlington, VT – Direct loan closings by the Vermont Economic Development Authority (VEDA) to Vermont commercial businesses and farms were up for the third year running as of June 30, 2011. And financings not directly included on the Authority’s balance sheets – such as industrial development bonds, mortgage insurance contracts, and SBA 504 loans – were more than double those of the year before.
VEDA’s year-end figures will be presented today at the Authority’s 37th Annual Meeting in South Burlington.
“FY 2011 was a period of tremendous activity at the Authority,” said VEDA Chief Executive Officer Jo Bradley. “Financing activity was very strong as part of Vermont’s continuing recovery from a deep national recession. But, the year also brought special challenges and opportunities: heavy spring flooding necessitated emergency lending, and $13.2 million in new federal funding, to be administered by VEDA, was committed to Vermont.”
Direct loan closings went from $27.4 million in 2009 to $36.1 million in 2010, to $40.4 million in 2011. And, closings of off-balance sheet financings went from $41.7 million in 2010 to $94.3 million in 2011.
Revenue bond financing at VEDA was also up for the year. In FY 2011, VEDA utilized the last of $135 million in increased federal tax-exempt bond capacity made possible by the American Recovery and Reinvestment Act. Bond financing was $128 million in 2011, second only to the $170 million in revenue bonds issued by the Authority last year.
“These significant increases in volume show the special need for VEDA financing assistance during difficult economic times,” said Bradley. “In remaining flexible and responsive to changes in the Vermont economy, VEDA plays a vital role, helping Vermont businesses and farms remain strong, especially in the face of serious economic challenges.”
In FY 2011, the U.S. Department of the Treasury announced the approval of Vermont’s application for $13.2 million in State Small Business Credit Initiative (SSBCI) funding under the Small Business Jobs Act. The funding, to be administered by VEDA, will help create new jobs, and with an expected private dollar leverage of 10:1, is expected to spur more than $132 million in small business lending in Vermont.
During the first quarter of VEDA’s Fiscal Year 2012, the Authority approved $24.4 million in business and agricultural financings, including:
- Vermont Industrial Products, Inc., Essex – Financing of $237,600 will help a mechanical seal machine shop expand its business. Vermont Industrial Products, Inc. (VIP) was started in 2004 and currently operates out of 6,000 feet of leased space in Colchester. VIP services and repairs mechanical seals for customers throughout Vermont, the United States and Canada. The company’s planned $677,499 capital investment project will include the purchase of 2.61 acres and a 9,000 square foot building in Saxon Hill Industrial Park in Essex. Vermont Industrial Products has six employees, a number expected to grow to eight within three years of the expansion project. Merchants Bank is also participating in the project financing.
- Green Mountain Economic Development Corporation for Advanced Illumination, LLC, Rochester – Financing of $1.08 million was approved to help Advanced Illumination purchase and renovate the building formerly owned by Oatmeal Studio in Rochester. Founded in 1993, Advanced Illumination is a lighting solutions company, specializing in the use of LEDs for the machine vision industry. The company has been operating out of two buildings totaling approximately 7,000 square feet in Rochester, and needed to expand. With help from Green Mountain Economic Development Corporation (GMEDC), Advanced Illumination plans to relocate and expand operations to the newly-renovated 23,000 square foot building. The company employs 43 persons, and payroll is expected to increase to 52 within three years of the $1.28 million project.
- Numia Medical Technology, LLC, Newport – Financing of $412,000 was approved to Numia Medical Technology, a rapidly-growing designer, developer and manufacturer of medical devices and systems used for continuous infusion of small-volume medications at a controlled rate. The VEDA financing will help Numia expand out of its existing space to a newly-acquired and renovated 24,200 square-foot vacant building in Newport. Numia employs 22 people, a number expected to grow to 30 within three years of the $1.03 million expansion project, in which Passumpsic Bank is also participating.
- Chroma Technology Corporation/Spencer, LLC, Bellows Falls – Financing of $1.12 million was approved to help Chroma Technology Corporation/Spencer purchase and renovate a 26,000 square foot building in Bellows Falls, and acquire and install new equipment. The new facility will be the second plant owned and operated by Chroma Technology in Bellows Falls, where the company employs 96 people. A developer and manufacturer of optical coatings and coated optical components marketed through the United States, Europe and Southeast Asia, Chroma expects to accommodate the company’s growth to 109 employees within three years of the $2.8 million expansion project, in which Merchants Bank and TD Bank are also participating.
- Flex-a-Seal, Inc., Essex Junction – Flex-a-Seal, Inc., Essex Junction – As part of a $675,000 equipment purchase and installation project, VEDA approved $270,000 in financing to Flex-a-Seal, Inc., a manufacturer of many different types of sealing products used in industries such as pulp and paper, hydrocarbon processing, chemical and food processing, drug manufacturing, and water systems. New inventory control and production equipment will help Flex-a-Seal grow their business from its current 72 employees to 82 within three years of the project. People’s United Bank is also participating in the project financing.
- WCW, Inc., Manchester – A New York-based mattress manufacturing company will relocate to Manchester, Vermont with the help of $1.2 million in VEDA financing. The $3 million project, which also includes financing provided by Merchants Bank, will help WCW, Inc. purchase the former Applejack property, and consolidate the company’s operations in southern Vermont. With a staff of 98, WCW, Inc. is a medical, consumer and hospitality bedding company, manufacturing and distributing mattresses in the United States and internationally. Within three years of the relocation and expansion project, WCW, Inc. hopes to increase employment to 122 positions.
VEDA’s mission is to promote economic prosperity in Vermont by providing financial assistance to eligible businesses, including manufacturing, agricultural, and travel and tourism enterprises. Since its inception in 1974, VEDA has made financing commitments totaling over $1.8 billion. For more information about VEDA, visit www.veda.org or call 802-828-5627.