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| What is the Vermont State Infrastructure Bank? |
| The Vermont State Infrastructure Bank (SIB) is a loan program operated by the Vermont Economic Development Authority (VEDA), the Vermont Agency of Transportation (VTrans) and the Federal Highway Administration. The SIB was created in 1997 by the Vermont Legislature. |
Who is Eligible? |
| Eligible borrowers include any municipality, regional
development corporation or political subdivision of the state. Private
sector companies that have entered into a contract with a public
authority to carry out a qualified project are also eligible.
Eligible projects must meet the requirements of either Title 23 or Title 49 of the Federal Code of Regulations. Very generally, these projects involve the construction or reconstruction of highways, roads and bridges and also include certain facilities related to rail transit. The Federal Highway Administration determines project eligibility. |
What Types of Projects has the SIB Approved? |
| The SIB has approved loans for several projects since inception. These include, among others, intermodal petroleum storage and transfer facilities, a road salt storage facility, as well as road improvement project for a municipality. |
How Do I Apply for a Loan? |
| Interested parties are urged to contact the SIB
Coordinator whose office is at VEDA. VEDA's telephone number is
(802) 828-5627. After a preliminary discussion, the
Coordinator may request that the potential applicant submit a brief
written summary of the project so that its eligibility can be
determined.
If the project is deemed to be eligible, an application will be provided and the SIB Coordinator and VTrans personnel will work with the applicant to complete the loan application. There is no loan application fee. |
What are Typical SIB Loan Terms and Conditions? |
| Currently, SIB loan interest rates are fixed at 4% for loans to private sector borrowers and 2.5% for loans to municipal-type borrowers. SIB's interest rates are, however, subject to adjustment; for prevailing rates please call (802) 828-5627. Loan terms may not exceed 30 years, and repayments must commence no later than five years after the completion of the project (although payments usually commence sooner than this). A 20% equity contribution to project costs is normally required from the borrower, although in special cases only 10% may be required. Loans must be adequately collateralized by the borrower and loan decisions are made by the 11 member SIB Board of Directors. Appropriate federal and state environmental permits and approval must be obtained for SIB projects. |
SIB Also Makes Loans for Commuter Vans? |
| Yes. The SIB has funds available to lend to
qualified companies or groups of individuals who wish to purchase 7-15
passenger vans for commuter purposes.
SIB offers very attractive financing terms on these loans. The borrower repays only the loan principal amount, and is not required to pay any interest charges or application fees. |
The Goal of the State Infrastructure Bank |
| SIB's goal is "to assist the improvement, rehabilitation, expansion, and constructing of transportation projects within the state to contribute to the economic welfare of the state by providing jobs and other economic opportunities for the people of the state and enhancing economic development..." |
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Revised February 2002 |