VEDA Disaster Recovery Loan Fund Benefits Vermont Businesses, Working Lands Enterprises, and Nonprofits

$15M Disaster Recovery Loan Fund is seeded with $2M in uncommitted BEGAP funds

Montpelier, Vt. - The Vermont Economic Development Authority (VEDA), Vermont Agency of Commerce and Community Development (ACCD), Vermont Agency of Agriculture, Food and Markets (AAFM), and Vermont Department of Forests, Parks, and Recreation (FPR) today announce the launch of VEDA's Disaster Recovery Loan Fund. This fund provides financial assistance to Vermont businesses; working lands enterprises including farms, logging operations, and sawmills; and not-for-profit organizations to recover from damage caused by disasters. Proceeds may be used to repair or replace damaged property and/or inventory, as well as relieve economic injury by replenishing working capital.

"As Vermont's economic development lender, VEDA is proud to lead this effort to strengthen our state's economic resilience," said Joan Goldstein, CEO of VEDA. "When disaster hits, businesses need support fast, and now we have a fund in place so we can deliver it quickly, helping them recover and reopen their doors as soon as possible."

The new $15 million VEDA Disaster Recovery Loan Fund is being capitalized with $13 million in VEDA assets and $2 million in residual Business Emergency Gap Assistance Program (BEGAP) funds. The fund offers loans with interest rates capped to cover VEDA's borrowing costs and administration of the program. The Disaster Recovery Loan Fund is also a revolving loan fund, so repayments will replenish the fund over time, making it a lasting resource.

BEGAP, administered by the Vermont Department of Economic Development, provided $24.7 million in emergency relief to 692 Vermont operations impacted by historic flooding in 2023 and 2024.

"Over the past two years, the Department of Economic Development has mobilized ad-hoc emergency grant programs to help Vermont businesses recover from flooding," said Secretary Lindsay Kurrle of the Agency of Commerce and Community Development which includes the Department of Economic Development. "Now, with the establishment of this permanent fund, Vermont will be better prepared. Businesses will have reliable and immediately accessible financial assistance they can count on when disaster strikes."

BEGAP helped stabilize downtowns, preserve jobs, and prevent business closures. Nearly 30% of recipients were agricultural operations.

"Our farms are critical to the identity and economy of rural Vermont, and they're also uniquely vulnerable to disasters, especially major weather events," said Vermont Agriculture, Food and Markets Secretary Anson Tebbetts. "This fund will ensure that the state can be a consistent partner in recovery."

"Vermont's working lands are at the heart of our communities and economy, and when disaster strikes, they feel the impact immediately," said Forests, Parks, and Recreation Commissioner Danielle Fitzko. "Including the forest products sector in the Disaster Recovery Loan Fund ensures that loggers, mills, and forest-based enterprises have the resources they need to repair, reopen, and keep delivering the products and jobs Vermonters depend on. I'm heartened to see this program recognize the importance of our forest economy and provide critical support when it's needed most."

Visit VEDA's website to learn more about the Disaster Recovery Loan Fund and to apply. BEGAP funds for the Disaster Recovery Loan Fund were appropriated to VEDA in 2025 under H.398 (Act 26) signed by Governor Scott.

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The Vermont Economic Development Authority is the statewide economic development finance lender. Created by the General Assembly in 1974, VEDA's mission is to contribute to Vermont's economic vitality by providing a broad array of financing programs to eligible farms, businesses, foresters, and nonprofit organizations that create jobs and help advance Vermont's public policy goals.

The Vermont Department of Economic Development strengthens economic activity throughout the state to ensure Vermont's long-term economic health and promote growth in quality jobs for Vermonters. Business support staff make connections to programs focused on employee training and workforce development, market expansion, facility location, and environmental remediation to help businesses start or expand in Vermont and strengthen our rural economies. DED prioritizes protecting state resources, improving public infrastructure, enhancing quality of life, diversifying the economy, and reflecting the character of Vermont.

The Vermont Agency of Agriculture, Food & Markets facilitates, supports and encourages the growth and viability of agriculture in Vermont while protecting the working landscape, human health, animal health, plant health, consumers and the environment.

The Vermont Department of Forests, Parks and Recreation is responsible for the conservation and management of Vermont's forest resources, the operation and maintenance of the State Park system, and the promotion and support of outdoor recreation for Vermonters and our visitors. In addition, FPR is responsible for the acquisition, planning coordination and administration of all Agency of Natural Resources lands.