VT LEG #381702 v.1A
H.398 – An act relating to the Vermont Economic
Development Authority
As recommended by the House Committee on Appropriations
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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.
As recommended by the House Committee on Commerce and Economic Development, Section 3 would
have amended 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 (DED) for a grant to VEDA to initially
capitalize the Fund. The House Committee on Appropriations recommends removing this appropriation from
the bill to instead reflect it in the annual appropriations act.
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.
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.
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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.
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March 18, 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.1A
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
As recommended by the House Committee on Commerce and Economic Development, Section 3 would
have amended Act 113, Sec. B.1100(h) to appropriate $2,000,000 General Fund in fiscal year 2025 to DED
for a grant to VEDA to initially capitalize the Fund. The House Committee on Appropriations recommends
removing this appropriation from the bill to instead reflect it in the annual appropriations act, with the
intention of funding this by repurposing an unused portion of a $7,000,000 appropriation for the Business
Emergency Gap Assistance Program (consistent with what was recommended by the Governor.)
It is possible that future program costs could necessitate further appropriations beyond this initial $2,000,000
appropriation.
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The bill as recommended by the House Committee on Commerce and Economic Development can be found here:
https://legislature.vermont.gov/Documents/2026/Workgroups/House%20Appropriations/Bills/H.398/Drafts,%20Ame
ndments,%20Other%20Legal%20Documents/H.398~Cameron%20Wood~House%20Committee%20on%20Commerce
%20and%20Economic%20Development%20Committee%20Report%20(11-0-0)~3-17-2025.pdf
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.