Flexible Loan Fund Application

The Vermont Bond Bank (“Bond Bank”) is requesting applications for a subsidized and highly flexible small loan program from towns, cities, villages, school districts, fire districts, and other bodies considered to be governmental units under Vermont statute.


Historically, the Bond Bank has subsidized bond level costs of issuance for the Pooled Loan Program. Though due to the time horizon and economy of scale achieved by our bond pools, the actual savings per borrower per year is negligible.

The Bond Bank is committed to ongoing support for borrowers whenever possible and believes those funds could be better used in a new flexible lending program.

In a sense, rather than spread a small benefit broadly over time, the new program would give communities access to rightsized financing when their needs are most acute.

Potential Terms

  • Amount: $10,000 to $400,000
  • Term: 2 to 8 years
  • Prepayment: Continuous with no penalty
  • Rate: 0 to 1 percent
  • Local Authorization: Bond or note that is a general obligation of the governmental unit


Applications are due no later than Friday, December 16, 2022. Awards will be announced in mid-January 2023 at the Bond Bank’s next board meeting.

Funds to be available following closing in late February.

Submit the below application to with “Bond Bank Flexible Fund” in the subject of the email. Note that additional information might be requested

Bond Bank Disclosure

The Bond Bank reserves the right to not move forward with the small loan program, modify terms, and otherwise depart from the description of activities described above.