VEDA Launches New Economic Recovery and Opportunity Program

Contributing Editor — Tue, 03 Jun 2008 16:39:01 +0000

MONTPELIER, VT – The Vermont Economic Development Authority (VEDA) will soon launch a new commercial loan program offering interest rates as low as three percentage points below Wall Street Journal Prime. The Economic Recovery and Opportunity Program will allow VEDA to make up to $18 million in Program loans over two years. The program will be effective July 1, 2008.

“The Program will allow us to effectively reduce the interest rates at which we borrow,” said VEDA Chief Executive Officer Jo Bradley. “This, in turn, will enable VEDA to pass on the savings to our borrowers, for whom we hope the Program will provide an immediate opportunity to invest in their businesses during these difficult economic times.”

Up to $18 million in funds available under the Program will be loaned on a first-come-first-served basis, and the Program will terminate when program funds are depleted or on June 30, 2010, whichever occurs first.

“These loan rates are unprecedented in recent memory,” said Bradley. “Based on today’s Wall Street Journal Prime of 5.0%, an initial borrower rate could be as low as 2.0%.” The rates will be adjustable quarterly.

The eligibility, uses and limitations of the Program will match those of VEDA’s Direct Loan Program. VEDA may either make its own direct loan to an eligible and qualified borrower, or purchase a portion of a bank loan. The maximum loan available to any borrower is $1.3 million. Program loan funds may be used to purchase land and buildings, finance construction or renovation, or purchase and install machinery, equipment, furniture and fixtures.

For more information about VEDA and this loan program, visit http://www.veda.org or call 802-828-5627.

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VEDA Launches New Economic Recovery and Opportunity Program