Appropriations committee reviews H.398 changes to VIDA authority and disaster loan fund

The House Appropriations Committee met March 17 to consider H.398, an act relating to the Vermont Economic Development Authority (VIDA), including proposals to broaden VIDA's lending authority and to create a Vermont Disaster Recovery Loan Fund seeded with $2 million repurposed from an existing Business Growth and Agricultural Program (BGAP) appropriation.

The bill would expand the definition of eligible projects to include capital improvements, receivables and other secured lending; extend loan terms for local development corporations from 10 to 20 years; allow VIDA to pledge securities, use credit enhancements and purchase its own bonds; and add statutory language that shields VIDA board members and staff from personal liability for bonds or contracts except for intentional misconduct. It would also replace the current process for a governor-issued Vermont Sustainable Jobs Strategy (cited in statute at section 280B) by putting the existing strategy language into statute and adding a clause to consider the effects of climate change.

The measure…