The United States Department of Agriculture Rural Development (USDA RD) recently awarded a $1.0 million Intermediary Relending Program (IRP) loan to the Vermont Economic Development Authority (VEDA) to support and expand small business lending in Vermont.
‘These funds will leverage additional capital, put Vermonters to work, and help rural communities create wealth,’ said Ted Brady, USDA Rural Development State Director for Vermont and New Hampshire. ‘VEDA’s proven track record of putting federal dollars to work supporting small businesses helped the organization’s application rise to the top.’
This award brings VEDA’s total IRP relationship with USDA to $8.7 million. Since receiving their first loan in 1989, VEDA has assisted 240 businesses and impacted 2,000 jobs with USDA RD funding.
VEDA provides small business loans 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 RD funding with its private capital, VEDA is able to offer its small business loans at very favorable rates that result in lower interest rates for Vermont businesses. The VEDA-USDA RD relationship is a model of Federal, State and private resources that works efficiently and supports a climate of business start-up and expansion.
‘VEDA’s partnership with USDA Rural Development has been integral to the workings of the Authority’s Small Business Loan Program,’ said Jo Bradley, VEDA’s Chief Executive Officer. ‘We’re very excited about being able to continue our small business lending because of these new funds.’
About USDA Rural Development
USDA Rural Development is a mission area within the United States Department of Agriculture and provides financial resources to support housing, essential community facility, water and wastewater, business, energy and cooperative programs in rural communities. USDA Rural Development has a national portfolio of $189 billion in assets. Services are delivered by local field offices located in Montpelier, Brattleboro and St. Johnsbury, Vermont and Concord, Conway and Berlin, New Hampshire. For more information about Rural Development, visit www.rurdev.usda.gov/nh-vt/Home.html.
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, tax-exempt bond issuances and loan guarantees to businesses and farms of all sizes tailoring each offering to meet the needs of the business. VEDA typically lends in conjunction with banks and other partners to achieve truly customized financial offerings.
Since 1974, VEDA has provided over $1.9 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
Montpelier, VT September 20, 2013 -VEDA
USDA makes $1 million available to expand VEDA’s small business loan programs
Submitted by tim
on