Montpelier, VT—Today, Treasurer Mike Pieciak announced the approval of over $1.3 million in low interest loans to 10 Vermont Towns through his office’s Municipal Equipment Loan Fund. The initiative aims to make essential equipment more affordable for local governments, offering low-interest financing to municipalities for purchases like construction, fire, emergency, and heavy equipment or vehicles. The loans offer interest rates lower than the market average, collectively saving municipalities an estimated $150,000 on the $1.3 million financed.
Treasurer Pieciak said, “The Municipal Equipment Loan Fund offers critical financing to municipalities who often work on tight budgets, ensuring towns can maintain and improve their infrastructure and provide essential services. The program saves towns money, potentially freeing up additional funds to support economic development, climate resilience, and services for vulnerable Vermonters. Raising awareness of this program will help more towns take advantage of this opportunity.”
Under the program, municipalities can apply for up to $150,000 to purchase equipment costing at least $20,000. The loans can cover up to 75% of the purchase and must be repaid to the state within five years. For individual municipalities, the interest rate is two percent. No interest is charged for two or more municipalities that apply jointly for a purchase.
Loans are issued twice per fiscal year based on equitable geographic distribution, a town’s financial need, and its ability to repay. A committee consisting of the State Treasurer, Secretary of Transportation, Commissioner of Public Safety, and Commissioner of Motor Vehicles, reviews and approves applications.
“The Municipal Equipment Loan Fund is another funding pathway that I urge towns to consider when planning Capital purchases,” said Transportation Secretary Joe Flynn. “Having served on my hometown select board and volunteer fire department, I know firsthand that the fund can mean the difference between purchasing that much-needed piece of equipment and having to postpone until a future budget”.
Marshfield Town Clerk Bobbi Brimblecombe highlighted the program’s impact on Marshfield’s infrastructure and finances.
“Marshfield has used the Municipal Equipment Loan Fund for almost every highway equipment purchase that we have made over the last 20 years. The interest rates are usually the best that we can get, and they allow us to make annual payments rather than monthly, allowing us to better plan our cash flow needs,” Brimblecombe stated. “Promoting this program will help more towns benefit.”
The next deadline for municipalities to apply for funding is October 15, 2024, with $1.5 million available for FY25. Learn more about the Municipal Equipment Loan Fund, and how to apply, here.
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