EDA, on better financial footing, looks to restart revolving-loan fund for businesses

ALBION – The Orleans Economic Development Agency wants to restart a revolving loan fund that previously helped many businesses get started or do expansions in the county.

The previous fund ran from 2001 to 2019 and initially received $320,000 from the state. The EDA loaned money to businesses and as the money was paid back it and then loaned out again.

The state, however, forced the closure of the fund by the EDA and other revolving loan funds administered by local development corporations.

The EDA gave businesses the loans at 75 percent of the lowest prime rate. With the new program, the loan would be offered through the Orleans Land Restoration Corporation, a separate entity with the same board as the EDA.

The EDA has its own bigger pot of money to work with after several lean years. The EDA has received about $2.5 million from the Heritage Wind project in Barre, with another $1.8 million coming from Apex Clean Energy, owner of the Heritage project.

The EDA currently has about $2 million in the bank. The board would transfer some of its money to Land Restoration Corporation for the revolving loan fund. The EDA, during a budget crunch, has borrowed money before from the Land Restoration Corporation and transferring money there would be paying it back for the previous loans, said John Misiti, the EDA board chairman.

He discussed the revolving loan fund this morning during the board meetings for the EDA and then the Land Restoration Corporation. He said the fund could become the “crown jewel” of the agency, assisting businesses in the county.

He and board member Craig Tuohey are working to establish guidelines for the program that would need input from the full EDA board.

Misiti said the guidelines may set a minimum loan of $50,000 to a maximum of $250,000. Those loans could be paid from five to 10 years, with the loans at 2 percent above the prime rate.

“We don’t want to make it real restrictive but we want to protect the agency too,” Misiti said during today’s EDA meeting. “We’re trying to make it simple, fair and secure.”

He is hoping to guidelines in place by the end of the year so the revolving loan fund could be started next year. He sees it as “a bridge loan” providing needed financing for projects in the county.

With the Heritage Wind project, the company cleared some of the wooded areas for the project, which includes 28 wind turbines with a capacity for 126 megawatts.

Apex, in an announcement to the community, said civil construction was scheduled to begin about Oct. 1, 2026, starting with work at the substation and Point of Interconnection switchyard site, including the installation of the collection substation foundations.

“Subsequent phases of construction—including installation of the electrical collection system high voltage construction at the substation and POI switchyard site and installation of the O&M facility, and delivery and installation of the wind turbines—are expected to occur in 2027 and 2028,” the company said.

Apex has already paid the EDA $775,000 in late 2024, and then another $1.8 million about a year ago.  Another $1.8 million will be due a year after the PILOT/lease-leaseback transaction. The money to the EDA is for administering a PILOT agreement to the local municipalities.

The company will pay $9,000 per megawatt to local municipalities or $1,134,000 in the first year, with a 2 percent increase after that over 25 years.

Barre gets 75 percent of the money as part of a Host Community Agreement. The $6,750 per megawatt totals $850,000. The remaining 25 percent or $2,250 per megawatt is evenly split by the school district and county. That is $140,175 each.