VT LEG #381702 v.1
H.398 – An act relating to the Vermont Economic
Development Authority
As recommended by the House Committee on Commerce and Economic Development ,
Draft 1.2
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Bill Summary
his bill, as recommended, makes numerous changes and technical
updates to laws pertaining to the Vermont Economic
Development Authority (VEDA). The bill also establishes the
Vermont Disaster Recovery Loan Fund to enable VEDA to provide
loans and other forms of financial assistance to businesses and
agricultural enterprises after disasters.
Fiscal Impact
The Vermont Disaster Recovery Loan Fund would provide financial assistance through a revolving loan
program, at a limited interest rate necessary to cover the costs of administering the Fund. Any excess
revenue would be deposited in the Fund.
Section 3 would amend Act 113 of 2024, the fiscal year 2025 appropriations act, to appropriate $2,000,000
from the General Fund to the Department of Economic Development (DEC) for a grant to VEDA to
initially capitalize the Fund.
Background and Details
The following provisions of the bill have a fiscal impact:
Vermont Disaster Recovery Loan Fund
Section 1 would establish within VEDA the Vermont Disaster Recovery Loan Fund. This Fund would
enable VEDA to provide loans through a revolving loan program and other forms of financial assistance to
businesses and agricultural enterprises after disasters. Any excess revenue would be deposited in the Fund.
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The Joint Fiscal Office (JFO) is a nonpartisan legislative office dedicated to producing unbiased fiscal analysis – this fiscal note is
meant to provide information for legislative consideration, not to provide policy recommendations.
T
This bill appropriates
$2,000,000 in fiscal year
2025 to establish and
fund the Vermont
Disaster Recovery Loan
Fund.
March 17, 2025 Chris Rupe, Associate Fiscal Officer; Pat Titterton, Senior Fiscal Analyst H.398 – An act relating to the Vermont Economic Development Authority 2
VT LEG #381702 v.1
VEDA would be required to consult with the Secretary of Commerce and Community Development and
the Secretary of Agriculture in determining whether funds should be made available following a disaster
event impacting areas of the state if no disaster declaration is issued by the Governor or President.
VEDA would be required to establish policies, procedures, and financing programs necessary to ensure
timely delivery of financial assistance after a disaster for the Fund. VEDA would be required to limit the
interest rates charged for loans provided from the Fund to the level necessary to cover the costs of
administering the Fund.
Appropriation
Section 3 amends Act 113, Sec. B.1100(h) to appropriate $2,000,000 General Fund in fiscal year 2025 to
DEC for a grant to VEDA to initially capitalize the Fund.
It is possible that future program costs could necessitate further appropriations beyond this initial $2,000,000
appropriation.
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The full fiscal note history is available on the fiscal tab of the bill page on the General Assembly website and can be pulled up
through a bill number search on the JFO page.