VBB Solar Field

Pooled Loans

The Pooled Loan Program has provided over $2 billion in low-cost loans to Vermont governmental units for long-term capital projects over its 50-year history. Loans are primarily funded through the issuance of highly rated tax-exempt bonds by the Bond Bank.

Burlington Waterfront

Common uses of loans issued through the program include:

  • Facilities renovation and construction projects
  • Road and highway improvements
  • Energy efficiency upgrades
  • Equipment purchases
  • General infrastructure


Loans are made through the Pooled Loan Program in the winter and summer following the receipt of an application and approval by the Bond Bank’s Board.

Program Requirements
  • Eligible borrowers are governmental units including: cities, towns, schools, villages and various districts
  • Require evidence of voter approval and authority
  • Legal opinion from local bond counsel
  • Annual report for three years or three years of financial audits (preferred) 
  • Minimum requirement for financial audit from last completed year
  • Term of financing and useful life of asset financed must align
VBB Loan Process Chart

Loan Process

Most borrowers begin their loan process by contacting the Bond Bank early on to receive an illustrative debt service schedule that can be used for the purposes of estimating potential budget impacts. Borrowers then formally apply to the Bond Bank following engagement of local bond counsel and approval to issue the bond.

VBB Loan Process Chart
Advantages Considerations
  • Bond Bank maintains AA+ rating with low interest rates passed along to borrowers
  • Bond Bank provides technical expertise in organizing, structuring and pricing bonds
  • Economies of scale in accessing the capital markets
  • No upfront and/or on-going fees
  • Streamlined process from application to receipt of funds
  • Active market monitoring for refinancing opportunities with savings passed on to borrowers
  • Term of financing and amortization will always match (i.e. no "put" or balloon maturity)
  • No on-going risk of "catch-up" payments should tax rates change (investors not borrowers own tax risk)
  • Must comply with rules for tax-exempt financed (like all tax-exempt loans)
  • Availability of funding subject to Bond Bank schedule (winter and summer pools)
  • Refinancing of redemption subject to Bond Bank approval
  • Semi-annual payment of interest on May 1st and November 1st
  • Annual payment of principal on November 1st
  • Funds must be requisitioned from the Disbursement Agent (typically arrive in < 24 hours)
VBB Middlebury Banner

Past Projects

Learn more about our past work and impact. 


View Past Projects

Loan Terms & Repayment

Terms & Repayment

Follow the link to understand the timing of the Pooled Loan Program as well as details on the loan terms and repayment process.


View Loan Terms & Repayment Process

VBB Approved Counsels

Approved Legal Counsels

Local bond counsel serves a critical role in confirming the legality of our borrower’s debt issuances. Early engagement of local counsel will ensure that they will be able to provide a preliminary legal opinion alongside a loan application to the Bond Bank.


View Legal Counsels