Solar & Battery Regulation & Incentive Programs

Small Business Energy Loan Program

Program Overview


Category:
Financial Incentive
Program Type:
Loan Program
Implementing Sector:
State
State:
Vermont
Eligible Storage Technologies:
Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Combined Heat & Power, Landfill Gas, Equipment Insulation, Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Air conditioners, Heat recovery, Steam-system upgrades, Compressed air, Programmable Thermostats, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Siding, Roofs, Geothermal Direct-Use, Anaerobic Digestion, Fuel Cells using Renewable Fuels, Reflective Roofs, LED Lighting
Website:
http://www.veda.org/financing-options/vermont-commercial-financing/small-business-energy-loan-program/
Maximum Loan:
$500,000
Loan Term:
Determined on a case-by-case basis; maximum loan term of 10 years with a maximum 15 year amortization
Interest Rate:
Fixed at VEDA’s Small Business Index minus 1.5% for 5 years (currently 4.25%); then, adjusting to the variable VEDA Bate Rate plus 0.5% (currently 4.5%)
Administrator:
Vermont Economic Development Authority (VEDA)
Applicable Sectors:
Commercial, Local Government, Nonprofit
Last Updated:
10/28/2016

Summary

The Small Business Energy Loan Program (SBELP), created by Act 87 in 2013, is administered by the Vermont Economic Development Authority (VEDA). The SBELP provides loans to businesses for smaller renewable energy and energy efficiency projects. 

The maximum loan amount is $500,000, and VEDA will fund up to 60% of the project. However, in certain cases, VEDA may provide loans under $50,000 that cover up to 75% of project costs. Loans are provided at fixed rates; current rates can be found here . Loan terms are determined on a case-by-case basis, but the maximum loan term is generally 10 years with a maximum 15-year amortization.

Fees associated with SBELP loans include (1) a 1.25% commitment fee ($250 minimum and $2,500 maximum), (2) an Independent Engineer Review fee, (3) a $50 credit report fee, (4) an $18 flood insurance certification (if required), (5) an appraisal reimbursement (if applicable), (6) document recording and discharge fees, and (7) a $100 application fee.


Authorities

NameEnacted DateEffective DateExpired Date
10 V.S.A. § 280cc to § 280dd06/17/201306/17/2013