Montpelier, VT – The Vermont Economic Development Authority (VEDA) approved loans of $10 million for economic development projects totaling nearly $16 million. Four renewable energy generation projects are among those approved, receiving a total of $4.1 million in financing assistance. Agricultural, manufacturing and entrepreneurial projects are also included among the loan approvals.
“VEDA is pleased to provide financing assistance to renewable energy generation projects that will provide clean electrical power and reduce CO2 emissions throughout our state,” said VEDA CEO Jo Bradley. “In addition, loans approved by the Authority will help bring a new hotel to St. Albans, strengthen Vermont farms, and help a wooden bowl manufacturer expand into a renovated Hartland industrial building.”
Through VEDA’s Commercial Energy Loan Program, which helps Vermont businesses finance qualifying renewable energy generation and energy efficiency improvement projects, the Authority approved:
- Four loans totaling $4.1 million to partially finance four separate group net-metered solar arrays being constructed by Rural Generation Vermont, LLC and its parent company NextSun Energy, LLC. The total cost of the four nearly identical 500 KW AC systems will be approximately $7.4 million. The balance of the funding is expected to include approximately $2.2 million in tax credit equity funding from Global X Tax Asset Solutions in Cleveland, OH and $1.1 million in equity investment by NextSun Energy. Two of the solar arrays will be constructed in Danville, one in Fair Haven and one in Dover. The Dover solar array will be located at Town of Dover’s elementary school. The Town and School will be the net metering members for that project, earning credits on their electric bills based on the power produced by the system. The Winooski Housing Authority will be the net metering member for the other three solar arrays in Danville and Fair Haven. The credits earned by these systems will effectively be shared with Rural Generation Vermont and will reduce the ongoing electric bills for the Town of Dover and Winooski Housing Authority for the next 25 years. Together, the four projects will produce enough renewable electricity to power the equivalent of 495 average households, and reduce CO2 emissions by 1,980 tons each year.
Over $2 million in direct commercial financing was approved, including:
- $1.5 million to PeakCM Lake Street, LLC and 43 Lake Street LLC to construct a new hotel in Albans on a vacant lot adjacent to the new municipal parking garage. The project developers submitted the winning bid to a Request for Proposal issued by City officials last year. Upon completion, St. Albans will have a new 84-room Hampton Inn on .37 acres of land with five floors, breakfast area, indoor pool, meeting room, fitness room, and guest laundry. The property is well located in the St. Albans downtown district on Lake Street between Main and Federal Streets. The hotel will be within walking distance to the downtown restaurants and other businesses, the Mylan plant, and the State office building. Northfield Savings Bank and the City of St. Albans will also provide partial financing for the project. Within three years, it is estimated the project will create 19 new jobs. Construction is scheduled to begin in the spring of 2016 with a scheduled spring 2017 opening;
- Financing of $305,364 to help Simpson Cabinetry, a well-established manufacturer of custom residential and commercial cabinetry, purchase property in Essex and construct a new 8,160 square foot manufacturing facility there. As part of the expansion project, the company will purchase and install new equipment, as well. The business employs ten people, and estimates three more employees will be added within three years of the project, for which Northfield Savings Bank is also providing partial financing; and
- Andrew Pearce, Hartland – Partial financing of $264,000 to help wooden bowl manufacturer Andrew Pearce purchase and renovate a Hartland industrial building. The new, higher-visibility location will provide increased manufacturing space and enable greater operating efficiencies. Currently operating out of leased space in Bethel, Andrew Pearce employs six persons, a number expected to grow to twelve within three years of the expansion project, for which Mascoma Savings Bank is also providing partial financing.
Agricultural lending of almost $3.3 million was approved through the Authority’s agricultural loan program, the Vermont Agricultural Credit Corporation (VACC), which provides credit to Vermont farmers, agricultural facilities, forestry and forest product-based businesses.
Financing of $405,000 was approved through VEDA’s Local Development Corporation Loan Program, which assists nonprofit local and regional development corporations in building facilities for lease to identified eligible tenants, or planning and/or developing industrial parks.
An additional $160,000 loan was approved through VEDA’s Entrepreneurial Loan Program, which provides financing to meet the working capital and capital-asset financing needs of Vermont-based businesses in seed, start-up and growth stages that may not have access to conventional means of financing.
The 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 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 1974, VEDA has provided over $2.07 billion in financing assistance to thousands of eligible Vermont entrepreneurs, manufacturers, small businesses, family farms, and agricultural enterprises, helping them to realize their business growth goals, create jobs, and enhance the vitality of Vermont’s economy. For more information about VEDA, visit www.veda.org or call 802-828-JOBS.