VEDA’s Technology Loan Program provides financing to eligible for-profit and non-profit corporations offering technology-based goods and services to consumers located both inside and outside Vermont.
Eligibility – Individuals, partnerships, corporations or companies who wish to undertake a project that meets the requirements of Title 10, V.
, Chapter 12, Sections 280aa and 280bb; – Companies whose major activity is offering technology-based goods and services, as the Authority may in its sole discretion determine, to customers located both inside and outside Vermont; – For-profit and non-profit organizations.
Use of Proceeds – Purchase of capital assets and/or for working capital; – Refinance existing company debt or assets in certain cases, as the Authority may determine.
Loan Rates and Terms – Depending on the purpose for which the TLP loan is approved, VEDA’s loan term will not exceed five (5) years; – The Authority may collateralize its loans with mortgages on real estate and/or security interests in project machinery and equipment, an assignment of customer contracts and revenues therefrom, and/or a security interest in the proprietary technology used by the borrower, if appropriate; – Loans also will generally be guaranteed by any entity or individual who owns or controls at least 20% of the applicant company.
Flexibility with regard to collateral will be considered if adequate debt service cash flow coverage can be demonstrated; – In some cases the Authority may utilize non-conventional financing mechanisms and collateral arrangements including, but not limited to, royalty financing; – VEDA’s interest rate will be based on VEDA’s Base Rate Index, as adjusted from time to time, plus 3% and, at the discretion of the Authority, payment by the borrower of all or a portion of the accruing interest may be deferred for some period of time up to the maturity date of the loan.
Limitations – VEDA may not fund more than ninety percent (90%) of the cost of the project.
Typically, the borrower will be required to provide the remaining ten percent (10%) of the total project cost; – The maximum amount of any TLP loan will be $250,000. Fee Structure – Loan application fee is $100; – A 1.00% commitment fee is charged on all loans at the time of closing.
Vermont Economic Development Authority
Address: 58 East State Street, Suite 5