Vermont Business Magazine The Vermont Economic Development Authority (VEDA) has approved $14.4 million in loan and bond financings for commercial, agricultural, energy and small business projects throughout Vermont.“VEDA is pleased to help two of Vermont’s municipal electric utilities reach their renewable energy generation goals through the issuance of USTreasury clean energy bonds,” said VEDA Chief Executive Officer Jo Bradley.“Other financings approved by VEDA will help support commercial and agricultural investments, and additional energy, small business, and community development projects throughout Vermont.”
·VEDA approved issuance of $6.5 million in federally-authorized Clean Renewable Energy Bonds (CREBs) to fund two separate municipal solar energy generation projects planned by theTown of Stowe Electric Departmentand theVillage of Hyde Park Electric Department. Each department will construct an approximately 1 MW AC solar power generating facility to help meet Vermont’s new renewable energy standards for municipally-owned electric departments, and reduce overall electricity costs in the long run. Union Bank has committed to purchase the bonds for both projects. The Stowe Electric Department serves over 4,000 residential and commercial customers; Hyde Park Electric Department provides service to 1,326 retail customers.Together, the projects will produce enough renewable electricity to power the equivalent of 456 average households, and reduce CO2 emissions by 1,824 tons each year.
Project financings approved by VEDA also include:
·Northeast Washington County Community Health, Inc. (NWCCH), Plainfield– VEDA gave final approval for the refunding of a tax-exempt non-profit revenue bond for up to $1,598,000 – the balance of a former bond approved in 2007 that financed NWCCH’s purchase of 5.2 acres of land in Plainfield and the design and construction of a 22,000 square foot primary care and dental facility. The 2007 project permitted NWCCH to expand the number of patients from 8,500 to 12,000, and increase employment from 56 positions to 94. Northfield Savings Bank funded the original project and will purchase the refunding bond.
·Fairbanks Inn, St. Johnsbury– Financing of $800,000 was approved, with additional financing to be provided by TD Bank, for the purchase of the 46-room Fairbanks Inn. The $2.8 million project will include a number of upgrades to the inn.
·Global Values, Inc., Barre– Financing of $408,000 was approved as part of Global Values’ $1.02 million project to acquire additional machinery and equipment and make facility improvements. Community National Bank also will provide financing for the project. Recently, Global Values, Inc. (GVI), a distributor of high-quality color granite monuments, expanded into granite manufacturing following the company’s purchase of Houle Brothers Granite Company, Inc. The new equipment will allow GVI to maintain competitive turnaround times and prices within their expected margins. More importantly, it will enable new possibilities so that GVI’s domestic manufacturing will be able to compete with imported products. Job growth at the newly-merged company is expected to climb from 31 to 55within three yearsof the project.
·Vermod High Performance Manufactured Housing, LLC, Wilder–Financing of $300,000 was approved as part of an $847,500 project to help a manufacturer of energy-efficient modular homes acquire the land and industrial building the company has been leasing.Vermod High Performance Manufactured Housinguses quality construction and the latest in energy-efficient technology. Each home is built inside the company’s industrial building and then shipped to its site as either a completed unit or in sections. The houses all have a high level of insulation, energy-efficient water heaters, triple-pane windows, LED lighting, and solar panels on the roof -- measures allowing the home owner to have low or no energy costs. Employment at the company is expected to grow from the current thirteen position to 26within three yearsof the project, for which Mascoma Savings Bank is providing additional financing.
Agricultural loans totaling over $3.1 million were approved through the Authority’s agricultural loan program, theVermont Agricultural Credit Corporation (VACC),which provides credit to Vermont farmers, agricultural facilities, forestry and forest product-based businesses.
VEDA also approved over $1.2 million in loans through the Authority’sSmall Business Loan Program,which assists growing Vermont small businesses that are unable to access adequate sources of conventional financing. Approved small business loans include:
·Ye Olde Tavern, Manchester Center -$220,000 as partial financing for a $550,000 project to help the owners of restaurant Ye Olde Tavern purchase the land and building on Old Route 7 where their business has been housed since 2001. Ye Olde Tavern is a highly-ranked full-service, fine dining restaurant with 90 seats; the property is on the Vermont Registry of Historic Places. The Bank of Bennington is providing additional financing for the project.
·Wild Hart Distillery, Inc., Shelburne -$150,000 as partial financing for a $350,000 business start-up project to produce and sell wholesale and retail craft-distilled flavored and non-flavored spirits. Wild Hart Distillery will purchase equipment and inventory, and make leasehold improvements to their Shelburne Road facility.
VEDA’sCommercial Energy Loan Programhelps Vermont businesses finance qualifying renewable energy generation and energy efficiency improvement projects.Through this financing program, the Authority recently approved two loans to partially finance exciting group net-metered solar arrays in Burlington and Williamstown. VEDA lentCCN Solar, LLC$216,000 to partially finance construction of its new solar array on the roof of the 747 Pine Street property. The affiliated partnership purchased and revitalized the property last year for lease to a variety of small businesses. These businesses will all now be Net Metering Members and earn renewable electricity credits as part of their lease package.GPS WSD I, LLCborrowed $244,918 from VEDA to partially finance construction of a 150 KW group net-metered solar array project that will produce renewable electricity for the Williamstown School District.Together, the two projects will produce enough renewable electricity to power the equivalent of 60 average households, and reduce CO2 emissions by 240 tons each year.
VEDA
The Vermont Economic Development Authority (VEDA) is Vermont’s nonprofit 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 $2.16 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, visitwww.veda.orgor call 802-828-JOBS.