An act relating to the Vermont Economic Development Authority
Sponsored By: Michael J Marcotte (Republican)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 7 benefits, 2 costs, 1 mixed.
Personal liability protection for Authority staff
Designated Authority members, directors, officers, employees, and agents are not personally liable on Authority bonds or contracts. They are also not personally accountable because the Authority issues bonds. This protection does not cover liability or accountability caused by intentional misconduct.
Low-cost disaster loans for Vermont businesses
Beginning July 1, 2025, the revolving Vermont Disaster Recovery Loan Fund offers business loans and other financial help. Agricultural and forest product businesses are included. Interest is limited to necessary administration costs, and excess revenues return to the Fund. The Authority must consider State disaster aid an applicant received for the same event. For disasters not declared by the Governor or President, it must first consult state commerce, agriculture, and forestry officials.
More financing options for businesses and farms
The Vermont Economic Development Authority can finance more business projects, including nonprofit ventures. Eligible uses include capital improvements, working capital, insurance programs, and purchases of receivables, assets, or revenue streams. Existing exclusions for certain out-of-state-made retail goods and unauthorized housing remain. Beginning July 1, 2025, eligible financing programs also include agricultural loans administered under Vermont's agricultural credit law. Projects using the separate financial assistance process must meet its project criteria; approval is not guaranteed.
More flexible loans for Vermont businesses
Beginning July 1, 2025, the Authority can accept more assets as security for loans establishing or expanding eligible projects. Security can rank behind earlier loans or liens and include municipal communications plant assets and net revenues. The law removes the stated 20-year loan limit; the Authority must find the repayment deadline satisfactory. The Authority can buy or pay earlier secured loans when necessary to protect its existing loans. That money comes from the Vermont Jobs Fund, and proceeds from selling related security return to the Fund.
Development Authority takes charge of state projects
The Vermont Economic Development Authority, rather than the State itself, can undertake covered projects within Vermont. It acts as the State's agent for project financing documents. It can hold title to, or a right to possess, facilities financed with bonds. Before signing financing documents or bonds, it must make the required project findings.
More tools for managing development financing
The Authority can pledge assets and arrange insurance or other credit support for its financing. A pledge is binding when made; filing it in Authority records establishes the security claim without another legal filing. The Authority can also buy its own bonds and hold, pledge, resell, or cancel them, subject to bondholder agreements. Buying a bond alone does not end the debt. The Authority must cancel it or certify its intent to end it.
Easier financing for business development facilities
Local development corporations get longer repayment periods for loans to build, buy, or improve small business incubators. Full repayment, including interest and charges, is due within 20 years after occupancy, instead of 10 years. The Authority no longer needs detailed findings before issuing bonds for industrial parks, speculative buildings, incubators, or related land purchases. Those former findings covered sites, utilities, legal compliance, jobs, feasibility, and risk. Financing documents must still limit State payment obligations and cannot create State debt beyond an authorized special obligation.
Project standards guide Vermont business loans
Beginning July 1, 2025, projects using the Authority's covered assistance programs must materially support at least one state objective. Objectives include Vermont jobs, good wages and benefits, disadvantaged communities, local supply chains, environmental improvements, and downtown development. After reviewing credit risk, the Authority must consider project benefits, the amount requested, and its available resources. Meeting these standards does not guarantee funding.
Mortgage insurance option ends for project bonds
The law repeals the Authority's specific power to secure covered project bonds with mortgage insurance. Related reinsurance and loan-loss-reserve provisions also end. The associated $2.5 million limit and mortgage-insurance definitions are removed with that financing option.
Broader Jobs Fund uses, fewer funding tools
Beginning July 1, 2025, Vermont Jobs Fund money can support purposes throughout the Authority's economic development law. Money can be reused, and unused balances remain available. Export Finance Program revenues above expenses must go into the Jobs Fund. The law removes the Authority's specific power to issue notes for the State Treasurer to buy and fund these loans. It also removes the related minimum loan interest-rate rule; no new funding amount is specified.
Sponsors & Cosponsors
Sponsor
Michael J Marcotte
Republican • House
Cosponsors
Edye Graning
Democratic • House
Monique Priestley
Democratic • House
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
House message: Governor approved bill on May 21, 2025
5/22/2025HouseSigned by Governor on May 21, 2025
5/21/2025HouseDelivered to Governor on May 15, 2025
5/15/2025HouseHouse message: House concurred in Senate proposal of amendment to House proposal of amendment to Senate proposal of amendment
5/13/2025HouseSenate proposal of amendment to House proposal of amendment to Senate proposal of amendment concurred in
5/9/2025HouseAction Calendar: Senate Proposal of Amendment to House Proposal of Amendment to Senate Proposal of Amendment
5/9/2025HouseNotice Calendar: Senate Proposal of Amendment to House Proposal of Amendment to Senate Proposal of Amendment
5/8/2025HouseSenate Message: House proposal of amendment to Senate proposal of amendment concurred in with further proposal of amendment thereto
5/7/2025SenateHouse proposal of amendment to Senate proposal of amendment concurred in with further proposal of amendment as moved by Senator Chittenden, Beck, Brock, Cummings, Gulick, Hardy, and Mattos
5/6/2025SenateHouse proposal of amendment to Senate proposal of amendment, text
5/6/2025SenateUnfinished Business/House Proposal of Amendment
5/6/2025SenateHouse proposal of amendment to Senate proposal of amendment
5/2/2025SenateHouse proposal of amendment to Senate proposal of amendment
5/1/2025SenateEntered on Notice Calendar
5/1/2025SenateHouse message: House concurred in Senate proposal of amendment with proposal of amendment
4/30/2025HouseSenate proposal of amendment concurred in with further amendment thereto, as offered by Rep. Marcotte of Coventry and Graning of Jericho
4/29/2025HouseAction Calendar: Unfinished Business
4/29/2025HouseAction Calendar: Action postponed until 4/28/2025
4/28/2025HouseRep. Carris-Duncan of Whitingham moved to postpone action until 4/28/2025, which was agreed to
4/25/2025HouseAction Calendar: Senate Proposal of Amendment
4/25/2025HouseNotice Calendar: Senate Proposal of Amendment
4/24/2025HouseSenate Message: Passed in concurrence with proposal of amendment
4/23/2025SenateRead 3rd time & passed in concurrence with proposal of amendment
4/22/2025SenatePending third reading, Senator Chittenden, Beck, Brock, Cummings, Gulick, Hardy, and Mattos proposal of amendment, agreed to
4/22/2025SenateProposal of amendment to be offered by Senator(s) Chittenden, Beck, Brock, Cummings, Gulick, Hardy, and Mattos
4/22/2025Senate
Bill Text
As Enacted (ACT 26)Opens in a new window
6/30/2025
As Passed by Both Chambers
5/14/2025
As Passed by Both Chambers (Unofficial)
5/14/2025
Senate Proposal of Amendment (Unofficial)
5/9/2025
Senate Proposal of Amendment
4/25/2025
As Passed by the House
3/26/2025
As Passed by the House (Unofficial)
3/26/2025
As Introduced
2/25/2025
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