MONTPELIER, VT, September 25 – Rural entrepreneurs will continue to have access to vital capital through the Vermont Economic Development Authority (VEDA) thanks to a $1 million loan from the U.S. Department of Agriculture (USDA). The loan from USDA’s Intermediary Relending Program will recapitalize VEDA’s Vermont Small Business Development Corporation to provide capital to growing Vermont businesses.
“Vermont’s rural businesses, from farms to manufacturers, depend on a mix of private and public capital like that provided by USDA to help them grow and create new jobs,” said Ted Brady, USDA Rural Development Vermont State Director. “Strong partners such as VEDA help us make a bridge between federal funding and investing in local entrepreneurs.”
“VEDA is very pleased to be receiving another $1 million loan from USDA-RD for our small business loan program,” said Jo Bradley, VEDA Chief Executive Officer. “These funds help VEDA continue to make attractive financing available to Vermont’s small business community, demonstrating yet again the strong partnership between VEDA and USDA.”
USDA Rural Development has awarded VEDA a $1 million, 30 year, loan at a fixed interest rate of 1 percent. The Intermediary Lending Program provides capital to community development corporations that invest the money in small and emerging businesses within the communities they serve. VEDA will use the funds to lend to Vermont businesses that might otherwise struggle to gain access to adequate financing. VEDA estimates that this USDA loan will create 28 full time jobs, retain 63 jobs, and assist 7 new businesses.
In January, Julianne Murat of the Vergennes Laundy used a $110,000 Vermont Small Business Development Corporation loan previously funded by the USDA as part of a financing package to purchase the real estate which houses her bakery. Named for the old Vergennes Laundry that formerly occupied the space, the bakery uses a wood-fired brick oven to produce artisan bread and pastries. In addition to selling its products onsite, Vergennes Laundry is a regular at the Shelburne Farmer’s Market. The USDA-supported funding helped secure the bakery’s location and six jobs in Vergennes.
This most recent addition to VEDA’s lending portfolio marks the thirteenth USDA loan to VEDA totaling $10.7 million since 1989. These funds have helped VEDA make 275 loans to small business owners and create or save more than 2,050 jobs across the state.
VEDA serves small businesses throughout Vermont. Business loans must be supported by collateral and cash flow. VEDA currently sources the majority of its business lending funds by borrowing from private capital markets at variable interest rates. By accessing and blending the long-term, fixed rate USDA funding with its private capital, VEDA is able to offer loans at lower rates to Vermont businesses. The VEDA-USDA relationship is a model of federal, state and private resources that works efficiently and supports a climate of business start-up and expansion in Vermont.
About USDA Rural Development
USDA, through its RD mission area, administers and manages housing, business and community infrastructure programs through a national network of state and local offices. Rural Development has an active portfolio of more than $210 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural areas. For more information on Rural Development visit the Vermont/New Hampshire Rural Development website (rd.usda.gov/vt) or contact USDA RD at (802) 828-6000.
About Vermont Economic Development Authority
Vermont Economic Development Authority (VEDA) is Vermont’s statewide economic development finance lender. VEDA was created by the General Assembly in 1974 with a mission “to contribute to the creation and retention of quality jobs in Vermont by providing loans and other financial support to eligible and qualified Vermont industrial, commercial and agricultural enterprises.”
Over the years, VEDA has grown and adapted its financing programs to keep pace with an ever-changing economy. VEDA offers a variety of low-cost lending options including direct loans to businesses and farms of all sizes tailoring each to meet the needs of the business. VEDA typically lends in conjunction with banks and other partners to achieve truly customized financial packages.
Since 1974, VEDA has provided over $2.07 billion in financial assistance to Vermont’s thriving entrepreneurs and family farms helping them in turn to create jobs to support vibrant communities. For more information about VEDA, visit www.veda.org or call (802) 828-JOBS.